Suppose you are attempting to value a $1-$year expiration option on a stock with volatility $($i$.$e$.,$

annualized standard deviation$)$ of $=0\mathrm{.}41.$

What would be the appropriate values for $u$ and $d$ if your binomial model is set up using:

a$.1$ period of $1$ year.

b$.4$ subperiods, each $3$ months.

c$.12$ subperiods, each $1$ month.

Note: Do not round intermediate calculations. Round your answers to $4$ decimal places.

Answer is complete but not entirely correct.