Suppose you are attempting to value a 1-year maturity option on a stock with volatility (i.e.,annualized standard deviation) of 0.48.

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=epx(- t)
a) 1	1/1 =1
b) 4	1/4 = 0.25
c) 12	1/12 = 0.0833