) let the continuously compounded risk-free interest rate be equal to 0.04. consider a one-period binomial tree with every period of length one year used to model the stock price of a non-dividend-paying stock whose current price is $50 per share. in the model, it is assumed that the stock price can either go up by 5% or down by 10%. you use the binomial tree to construct a replicating portfolio for a $48-strike, one-year european put on the above stock. what is the risk-free investment in the replicating portfolio? explicitly state whether one should be borrowing or lending.