Stock A is trading for $150. Consider an option that allows you to buy the stock for $150. What type of option is it, an

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Stock A is trading for $150. Consider an option that allows you
to buy the stock for $150. What type of option is it, and in which
state is it at? a) If the stock can only go either up to $190 or
down to $130 in the six months before expiry, what is the payoff of
the option? b) At a 4% semi-annual interest rate, calculate the
delta of the option . c) How much do you have to borrow / lend to
replicate the payoff of the option? d) What is the value of the
option using replication? e) What is the value of the option using
risk neutral probabilities?