4 Moscha's current stock price is $150 per share. In every 6 month period, the price will either go up by 25% or decrease by 20%. Suppose the risk free rate is 12% per year. A. Use one step binomial tree to volue a call option on Moschathat expires in six months with exercise price of $140. Replicate the payoff of call option in port A using shares of stocks and borrowing. What is the amount of borrowing? Re, Inc. is proposing to construct a new healthcare facilities in a country facing population aging toes. The two prime candidates are China and Japan. The forecasted cash flows from the proposed plants are as follows Ce C) C) China (ions of RMB) -5 1,5 3.3 10 Japan (Billions of JPY) -65 10 14 20 65 The spot exchange rate for RMB Is 1USD 6.75 RMB while the rate for Japanese Yen Is USD 1031PY. The interest rate is in the United States, 18 in Japan, and in China The financial manager has suggested that if the cash flows were stated in dollars, a return in excess of 8% would be acceptable. A. Calculate the NPV indoors for the facility in China Calculate the NPV in dollars for the facility in Japon