Consider a trinomial tree for the Ho-Lee model where o =0.02. The initial zero-coupon interest rate for maturities of 0.5, 1.0, and 1.5 years are 7.5%, 8%, and 8.5%. Using two time steps, each 6 months long, calculate the value of a zero-coupon bond with a Par amount of $100 and a remaining life of 6 months at the ends of the final nodes of the tree. Use the tree below to value a 1-year European option with a strike price of $95 on the bond. (Use the a standard for Ar = ov3At , for the Ho-Lee model, pu = Pa = 1/6 and Pm = 2/3 ). 14.42% E 10.95% 11.97% B F 7.50% 8.50% 9.52% G 6.06% 7.07% D H 4.62% price B, and price C? Under the European call option, what is the payoff value O A. 0.000, 1.956 OB. 1.342, 0.000 OC. No Answer OD 1.956, 0.000