inomial Option Pricing Case 1: A stock is currently priced at $39/share and pays no dividends. The periodic risk-free rate of interest is 2%. The up factor of 1.25 and a down factor of 0.8. Binomial Option Pricing Case 1: In a two-period binomial tree option pricing model, if after one period, the stock price moved up, assuming a new delta of 1 and a new call price of 14.44, for a dealer who has written 1000 European call with a strike price equal to 35, besides the written calls, the delta hedged portfolio is consist of:

	A.	a long position in the underlying stock of 1250 shares and a short bond at $24,560.
	B.	a long position in the underlying stock of 1000 shares and a short bond at $34,310.
	C.	a short position in the underlying stock of 1000 shares and a short bond at $34,310.
	D.	a short position in the underlying stock of 1250 shares and a long bond at $24,560.