Current stock price is $150 per share. If the standard deviation of the continuously compounded returns () on stock is 50 percent per year. Suppose the risk free rate is 16% per year.

A. Use one-step binomial tree to value a call option on Nio that expires in three months with exercise price of $220.

B. Replicate the payoff of call option in part A using shares of stocks and borrowing. What is the amount of borrowing?

C. Use one-step binomial tree to value a put option on Nio that expires in three month with exercise price of $180.

D. Use two step binomial tree to value a call option on Nio that expires in six-months with exercise price of $220.

E. Use Black-Scholes model to value the same option in part D.