Suppose you are attempting to value a 1-year expiration option on a stock with volatility (i.e., annualized standard deviation) of = 0.36.

a.	1 period of 1 year.
b.	4 subperiods, each 3 months.
c.	12 subperiods, each 1 month.

What would be the appropriate values for u and d if your binomial model is set up using: (Do not round intermediate calculations. Round your answers to 4 decimal places.)

	Subperiods	t = T/n	u = exp( t)	d = exp(- t)
a.	1	1/1 = 1
b.	4	1/4 = 0.25
c.	12	1/12 = 0.0833

This is a numeric cell, so please enter numbers only.