2. Assume XYZ Corporation is currently priced at $30. Assume the risk-free rate of interest is 5% compounded continuously, and the volatility of the stock is 30%. Create a two-jump binomial tree to price a 6-month European put with a strike price of $29. What is the hedge ratio for the put with respect to the underlying? PLEASE FILL IN THE ANSWERS at the bottom of the page. S(2) p(2)uu PO) $30 s(2)up ms p(2) S(1). p(1) S(2)DD U= answer D-answer R=answer IT-answer p(2)00 S(1)u= answer S(1)= answer S(2)uu= answer S(2) = answer S(2)pp= answer P(O)= answe] P(1)u= answer p(1) = answer p(2 ru= answej p(2)UD= answer] P(2)DD= answe ms= answer 2. Assume XYZ Corporation is currently priced at $30. Assume the risk-free rate of interest is 5% compounded continuously, and the volatility of the stock is 30%. Create a two-jump binomial tree to price a 6-month European put with a strike price of $29. What is the hedge ratio for the put with respect to the underlying? PLEASE FILL IN THE ANSWERS at the bottom of the page. S(2) p(2)uu PO) $30 s(2)up ms p(2) S(1). p(1) S(2)DD U= answer D-answer R=answer IT-answer p(2)00 S(1)u= answer S(1)= answer S(2)uu= answer S(2) = answer S(2)pp= answer P(O)= answe] P(1)u= answer p(1) = answer p(2 ru= answej p(2)UD= answer] P(2)DD= answe ms=