Question: Save Answer Question 7 4 points Suppose the current stock price is $50 and you believe that, one year from now, the stock will sell

Save Answer Question 7 4 points Suppose the current stock price is $50 and you believe that, one year from now, the stock will sell for either $60 (up-state) or $30 (down-state). The yield on a 1-year risk-free zero coupon bond is currently 3%. If you want to replicate a put option payoff with an exercise price of $40, how much would you need to lend today? O $19.42 O $29.13 O $9.71 O $20 O $38.83

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