Question 26 The volatility of a non-dividend-paying stock whose price is $80 is 40%. The risk-free rate is 3% per annum (continuously compounded) for all maturities. Not yet answered Each time step is of length 3 months. Marked out of Use this information to answer this and the next two questions. The values of u, d, and p are: 1.00 Flag question Oa 1.2414, 0.8187, 0.4689 Ob 1.2214, 0.8187, 0.4689 . 1.2314, 0.8187, 0.4689 Question 27 The value of a six-month European call option with a strike price of $100 given by a two-step binomial tree is closest to Not yet answered O a 8.9360 Marked out of Ob $4.5016 1.00 Oc. $4.1901 p Flag question Question 28 Suppose a trader sells 1,000 European call options (10 contracts) with a strike price of $100 and six months to the expiration date. Not yet The position in the stock which is necessary to hedge the trader's position at the time of the trade is: answered Marked out of O a. Buy 290.5 shares 1.00 Ob. Buy 279.5 shares p Flag question Oc. Buy 289.5 shares