( 1 point) Consider an n=1 step binomial tree with T=.5. Suppose r, the annualized risk-free rate is 4%, and delta, the annualized dividend rate is 2%. Also suppose the annualized standard deviation of the continuously compounded stock return, sigma, is 50%. Suppose further that the initial stock price, S=$85; and that the strike price K is $81. Suppose you observe a put price of $10.818, which is lower than the price for the European put option that you computed using the 1-step binomial tree method. By using the arbitrage method outlined in the book, that is, selling a synthetic put option and buying the actual put option: a) Determine the European put premium ? b) Determine the number of shares of stock that you'll buy ? c) Determine the amount of money that you'll borrow ? d) Determine the risk free profit from this arbitrage opportunity