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(1 point)An asset has value SD = 60 at t = O, and will have unknown value ST at time T A call option on the asset with strike K = 50 is currently (t = 0) selling for CD 2 1|] The discount factor for the period 0 to T is dogs 2 93/101], This problem shows that for these values' there is an arbitrage opportunity. Considerthe portfolio constructed att = 0 by selling (short) one unit of the asset, buying one call option, and depositing the present value of the strike in an ideal bank at the risk-free rate. ln constructing the portfolioI the cash ow relative to your wallet at time 0 is At t = 0 the funds in the bank equal the present value of the Shiite: At t = T the funds in the bank have grown to At t : T, withdraw the funds from the bank and reacqutre and return asset to owner. lf ST 2 K. reaoquire the asset by exercising the call option' the total cash ow at time T is lf ST