0/1pts - The stock's price S is $100. After three months, it either goes up and gets multiplied by the factor U=1.13847256, or it goes down and gets multiplied by the factor D=0.88664332. - Options mature after T=0.5 year and have a strike price of K=$105. - The continuously compounded risk-free interest rate r is 5 percent per year. - Today's European call price is c and the put price is p. Call prices after one period are denoted by ci in the up node and ci in the down node. Call prices after two periods are denoted by cio in the "up, and then down node" and so on. Put prices are similarly, defined. To create the arbitrage-free synthetic call after one period (in the up state) you need to: 1. buy 0.8585 shares of the stock and short sell 85.5777 units of the money market account 2. buy 0.4827 shares of the stock and short sell 42.2642 units of the money market account 3. buy 0.8585 shares of the stock and short sell 42.2642 units of the money market account 4. buy 0.9343 shares of the stock and short sell 93.2677 units of the money market account 5. None of these answers are correct