A non-dividend paying stock, currently priced at 140, is expected to go up by 10% or go down by 10% over a period. The risk free rate for one period is 4%. Build the tree! Sul Sd= The payoff of a call with X=$120 at expiration is: Cur Cd- The risk neutral probability is The value of the call today is (write: written/purchased). To create a hedge portfolio, you will need to buy shares for 1000 calls The value of the hedge portfolio today is and its value one period from now is If the call was overpriced at $26, you could earn return of % (round to two decimals)