A non dividend paying stock trades at 60. A call option with one year to expiration and strike 55 is to be priced using a two period binomial model. The volatility of the stock is 52%. The riskless rate of return is 12% continuously compounded. (a) Compute the values for u, d, R, and p. (b) Establish the two period lattice of prices for the stock (c) Compute the lattice of option prices. (d) Compute the initial replicating portfolio (e) What is the initial leverage of the option A non dividend paying stock trades at 60. A call option with one year to expiration and strike 55 is to be priced using a two period binomial model. The volatility of the stock is 52%. The riskless rate of return is 12% continuously compounded. (a) Compute the values for u, d, R, and p. (b) Establish the two period lattice of prices for the stock (c) Compute the lattice of option prices. (d) Compute the initial replicating portfolio (e) What is the initial leverage of the option