Consider a single-period binomial model of Example 6.3. Suppose you have written an option that pays the value of the squared difference between the stock price at maturity and $100.00; that is, it pays [S(1)−100]2. What is the cost C(0) of the replicating portfolio?. Construct arbitrage strategies in the case that the option price is less than C(0) and in the case that it is larger than C(0). Compute the option price as a risk-neutral expected value.