a m #3: Consider a European put option on a stock, with a $63 strike and 1-year to expiration. The stock has a continuous dividend yield of 6%, and its current price is $10. Suppose the volatility of the stock is 18%. The continuously compounded risk-free interest rate is 7%. Use a one-period binomial tree to calculate the following: (a) The payoff for up movement. (b) The payoff for down movement. (C) The corresponding replicating portfolio: The number of shares. (d) The corresponding replicating portfolio: The lent/borrowed amount. (e) The option premium. (A) 4891 (B) 50.91 (C) 47.91 (D) 49.91 (E) 46.91 roblem 3(a): Select Part (a) choices. (A) 50.56 (B) 51.56 (C) 52.56 (D) 54.56 (E) 53.56 roblem 83(b): Select Part (b) choices (A) 0,06 (B) -2.94 (C) 1.06 (D) -0.94 (E)-1.94 roblem #3(e): Select Part (c) choices (A) 60.74 (B) 57.74 (C) 56.74 (D) 58.74 (E) 59.74 Problem (d): Select 1 Part (d) choices. (A) 48.32 (B) 49.32 (C) 47.32 (D) 50.32 (E) 51.32 Problem 3(e): Select t Part (e) choices