(a) What is the value of u? (Leave 2 d.p. for the answer) (b) What is the value of Sud? (Leave 2 d.p. for the answer) (c) What is the value of Cuu? (Leave 2 d.p. for the answer) (d) What is the value of Cud? (Leave 2 d.p. for the answer) (e) What is the value of Cdd? (f) What is the value of Cu? (Leave 2 d.p. for the answer) (g) What is the value of Cd? (Leave 2 d.p. for the answer) (h) What is the call option premium C? (Leave 2 d.p. for the answer) (i) If the option is American style, in which node (u or d) do you want to exercise before expiration? Select one: a. Node u b. Node d

(j)What is the American call option premium? (Leave 2 d.p. for the answer)

With the following information: Spot price 100 Strike price 85 Continuously compounded Risk-free rate 2% Continuous Dividend yield 3% Time to maturity 1 year Annualized volatility 0.3 Construct a 2-step binomial tree for a European call option. Su Cuu G G4 Sad Cad