You are thinking of buying a European put option on MOC share. The current price of one MQC share is $30, and over the next month the share price will either increase to $35.66 (if there is a positive market response to MQC share) or decrease to $28.77 (if there is a negative market response to MQC share). The European put option will expire at the end of one month. The strike price is $29.5. The share will not pay any dividends during the next month. You can borrow money today for one month at the rate of j12 = 9% p.a. a) Suppose you estimate the probability of a positive market response to be 50%. Use the contingent payments method to find the amount you would be willing to pay today (i.e., the option premium) for the put option. O a. 3.057 O b. 0.610 O c. 0.730 O d. 0.362 You are thinking of buying a European put option on MQC share. The current price of one MQC share is $30, and over the next month the share price will either increase to $35.66 (if there is a positive market response to MQC share) or decrease to $28.77 (if there is a negative market response to MQC share). The European put option will expire at the end of one month. The strike price is $29.5. The share will not pay any dividends during the next month. You can borrow money today for one month at the rate of j12 = 9% p.a. b) Consider the replicating portfolio (that is, the investment strategy which will give identical payoffs, at the end of one month, to the put option) that involves borrowing h units of MQC shares today, and investing $B for one month. Find the values of h and B (round your answers to five decimal places). O a h=0.89405, B=25.53032 O b. h=0.36602, B= 10.93756 Och=0.10595, B=3.75007 O d. h=0.56647, B=14.64020