The price of the underlying asset is S $=50,$ the strike price is X $=52\mathrm{.}50,$ and the risk free rate is r $=2\mathrm{.}5\%$ per year. The $"$up$"$ parameter is u $=1\mathrm{.}25$ and the "down" parameter is d $=0\mathrm{.}8.$

Currently, the call option

I Is out of the money

II Is worthless if it is at expiration

III Has a value greater than zero if there is one period to expiration

a$.$ I only

b$.$ II only

c$.$ I and III

d$.$ I, II$,$ and III

e$.$ III only