Consider a European call option on a stock, with a $18 strike and 1-year to expiration. The stock has a continuous dividend yield of 0%, and its current price is $70. Suppose the volatility of the stock is 17%. The continuously compounded risk-free interest rate is 9%. 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.