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Consider the following two period binomial tree: Stock Prices $127 $116 $104 $105 $95 $85 If the strike price is $105, the call payoffs at

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Consider the following two period binomial tree: Stock Prices $127 $116 $104 $105 $95 $85 If the strike price is $105, the call payoffs at maturity are: Cuu = $12, Cud = $0, Cdd = $0 Cuu = $0, Cud = $12, Cdd = $9 Cuu = $22, Cud = $0, Cdd = $0 0 Cuu = $0, Cud = $1, Cdd = $20

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