Cosnider a model that is two period, t is in 0,1,2 - it is a model that follows multi period binomials -The values for a(u)=1.2 and the value for b(d)=0.9. -The r=0.04. it is the risk free rate(compounded continuously periodically) - We also know S( 8 )= 0.02 (this is the periodic dividend rate that's compounded continuously) - We know that SO(S subscript 0) = 100 this is the risk asset pricee initially. i) I need to know at the time zero(time) the unique price of an" at the money" (what does this mean?) European call option where theres are no arbitrage opps that are generated ii) For each tree node for the call option I need to find the composition for thee portfolio(replicating portfolio) Thank you! Cosnider a model that is two period, t is in 0,1,2 - it is a model that follows multi period binomials -The values for a(u)=1.2 and the value for b(d)=0.9. -The r=0.04. it is the risk free rate(compounded continuously periodically) - We also know S( 8 )= 0.02 (this is the periodic dividend rate that's compounded continuously) - We know that SO(S subscript 0) = 100 this is the risk asset pricee initially. i) I need to know at the time zero(time) the unique price of an" at the money" (what does this mean?) European call option where theres are no arbitrage opps that are generated ii) For each tree node for the call option I need to find the composition for thee portfolio(replicating portfolio) Thank you