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Let S = $ 1 0 0 , K = $ 9 5 , sigma = 3 0 % , r = 8 %

Let S = $100, K = $95,\sigma =30%, r =8%, T =1, and \ delta =0. For simplicity, let u =1.3, d 0.8 and n =2(that is,2 periods). When constructing the binomial tree for the European call option, what is B (Dollar Amount Borrowed in the replicating portfolio) at the down node at the end of Period 1(after the stock price goes down once)?
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Question 9 options: $103.49- $22.71 $64.48- $91.28-$ 13.84

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