You have compiled the following information about the pricing kernel

Economic State/

Likelihood m

(SDF) SP500

level

Sharp contraction (0.119) 1.01 3757

Mild recession (0.171) 1 3806

Slow growth (0.165) 0.96 4035

Rapid growth

(remaining likelihood) 0.92 4176

What would be the price of a call option on the SP500 index with a strike price of $3934?

[Hint: You'll need to compute the payoff(s) of the option]

You have compiled the following information about the pricing kemel What would be the price of a call option on the SP500 index with a strike price of $3934 ? [Hint: You'll need to compute the payoff(s) of the option]