with specific explains please.

= 12. Consider the two-state model of option valuation, where the underlying stock has price So 200, the risk-free interest rate is 5%, and the stock can either increase in value by a factor u = 1.25 or decrease by a factor d 0.8. We want to price a European call with strike price X = 205. The underlying stock pays no dividends. = (a) (3 points) How would you construct a leveraged equity portfolio in this envi- ronment that would replicate the call option? (b) (3 points) Find the value of the call (c) (3 points) Instead of the call, we decide we want to price a European put with a strike price X 190. Construct a perfectly hedged portfolio that involves long or short positions on put options and shares of stock. (d) (3 points) Find the value of the put (e) (3 points) Could you have used put-call parity to find the value of the put from your answer to part (b)? Why or why not? =