Now consider an option to sell the stock for $150. Once again, assume the stock can only go up to $190 or down to &130.

[answerhappygod]

Now consider an option to sell the stock for $150. Once again,
assume the stock can only go up to $190 or down to &130. The
semi-annual interest rate is 4%. Calculate the payoff of the
option. a) Calculate the option delta b) How much do you need to
borrow / lend to replicate the payoff of the option? c) Calculate
the value of the option using the stocks traded and amount
borrowed. d) Calculate the value of the option using put-call
parity. e) Calculate the value of the option using risk-neutral
probabilities.