QUESTION 3 Assume a one-period (annual) binomial model with the following characteristics: current stock price is $40, the up factor for each period is 1.10, the down factor for each period is 0.90, and the risk-free rate is 5 percent. (a) (3 pts) Draw the binomial tree for the stock with the appropriate pricing. (b) (2 pts) What is the current hedge ratio for a European call for that stock if it has a strike price of $43 and will expire in one year? (c) (2 pts) What is the current value of that same call