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Let S = $55, K = $50, r = 5% (continuously compounded), T = 0.5, and d = 0. Let u = 1.1, d =

Let S = $55, K = $50, r = 5% (continuously compounded), T = 0.5, and d = 0. Let u = 1.1, d = 0.9, and n = 1. What are D and B for a European call?

a.

D = 0.8839; B = 47.9728
b.

D = 1.2209; B = 46.2677
c.

D = 1.1855; B = 42.1202
d.

D = 0.9545; B = 46.0834
e.

D = 0.6892; B = 51.4291

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