3. Assume the annualized, continuously compounded return on Ford stock is normally distributed with mean .1952 and standard deviation of .36464. Also the annualized, continuously compounded risk-free rate is 3.98%. The current price of Ford stock is $50. Assume that Ford will not pay dividends over the next 6 months. . A) Find the values of u,d and p for a 2-period binomial model of Ford stock that you might use to price a 6 -month option. B) Using the 2-period model above, compute the value of a European put option on Ford w/ strike of $50. C) Using same model, find value of an American put on Ford w/ strike \$50. D) Based on the tree, what is the appropriate replicating portfolio to hold today to create the European put synthetically? . E) Assuming the stock price moves up over the first three months, determine how the replicating portfolio must be rebalanced. What is the net cost of this transaction? .F) Using the appropriate put-call parity equation, find the value of a 6-month European call option on Ford w/ a strike price of \$50. (Do not work out the binomial tree for the call)