You are evaluating a one-year call option on RACE (Ferrari), who currently has a stock price of $40/share. Next year the stock price of RACE will either increase to $48/share (if the economy does well) or decrease to $34/share (if the economy does poorly). The call option has a strike price of $44 and the risk-free rate for the year is 6%. Find the possible payoffs of the option. Describe the payoffs for a one-year put option on RACE with a strike price of $42