Assume that after one time period, the value of a stock (whose present value is R80) would be either R120 or R60. Suppose that, for any y, at a cost of Cy, one can purchase at a time-0 the option to buy y shares of the stock at time-1 at a price of R90 per share. For what values of C, no-arbitrage will be possible? (Provide necessary details)

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