1. Assume ABC Corporation is currently priced at $50. Assume the risk-free rate of interest is 3.5% compounded continuously, and the volatility of the stock is 25%. Create a two-jump binomial tree to price a 3- month European call with a strike price of $45. What is the hedge ratio for the call with respect to the underlying? PLEASE FILL IN THE ANSWERS at the bottom of the page. S(2) c(2) S(1) c(1) c(0) $50 S(2)UD ms c(2)UD S(1). c(1) S(2) c(2)DD U= answer D answer R=answer II= answer S(1)u= answer S(1)= answer S(2)uu= answer S(2)u= answer S(2)DD= answer c(O)= answer (1)= answer c(1)= answer c(2)uu= answer (2) = answer (2)DD= answe ms=