Let S=S55,r=4% (continuously compounded), =5%,=35%,T=1.5. In this situation, the appropriate values of u and d are 1.34394 and 0.73300 , respectively. Using a 2-step binomial tree, calculate the value of a $50-strike European call option. Selected Answer: (3) $10.623 Answers: a. $10.623 b. $11.791 c. $10.947 d. $10.309 e. 510.822 estion 6 1 out of 1 points Let S=$80,r=6% (continuously compounded), 8=4%,=40%,T=1. In this situation, the appropriate values of u and d are 1.34023 and 0.76121 , respectively, Using a 2-step binomial tres, calculate the value of a $90-strike American put option. Selected Answer: b. $18.040 Answers: a. $17.236 b. $18.040 c. $17.760 d. $18.301 e. $15.717