UU, U ULUUN P UUNI SUIN Price QUESTION 2 You observe a $45 price for a non-dividend paying stock. We consider a PUT option in a one-period binomial tree model. The periodically compounded risk-free interest rate is 4%, the exercise price is also $45, u = 1.21, and d = 0.77. Assume the call option is European-style. The hedge ratio at the beginning of the binomial tree is close to 0.5 -0.5 1.0 -1.0