Consider a non-dividend-paying stock whose price is $64. The stocks volatility is 30% per annum. The risk-free rate is 7% per annum (continuously compounded) for all maturities. Calculate values for u, d, and p when a 3-month time step is used. What is the value of a 9-month American put option with a strike price of $70, found using a 3-step binomial tree? Suppose a trader sells 1,000 of these options (10 contracts). What position in the stock is necessary to hedge the trader's position at the time of the initial trade? Consider a non-dividend-paying stock whose price is $64. The stocks volatility is 30% per annum. The risk-free rate is 7% per annum (continuously compounded) for all maturities. Calculate values for u, d, and p when a 3-month time step is used. What is the value of a 9-month American put option with a strike price of $70, found using a 3-step binomial tree? Suppose a trader sells 1,000 of these options (10 contracts). What position in the stock is necessary to hedge the trader's position at the time of the initial trade