The following diagram depicts the valuation of a European call option which has a strike price of $40 using a 1-step binomial tree. The proportional up ("u") and down ("d") movements on this tree are 1.2598 and 0.7938 respectively. The branch length ("\t") is 0.3333. The riskfree interest rate is 4% per annum continuously compounded. S. - $75.59 C. - $35.59 S - S60 Co-? Sa - $47.63 Co - $7.63 Time 0 Time 1/3 8t = 1/3 You will calculate the value of the call option today ($Co) using the replication approach. Answer each of the following questions, giving your answer to 2 decimal places. On this branch, delta (A) is equal to 1 which means that you need to buy the underlying shares. On this branch, "B" is equal to -39.47 which means that you need to borrow - this amount at the bank