The volatility of a non-dividend-paying stock whose price is $78, is 30%. The risk-free rate is 3%

Question:

The volatility of a non-dividend-paying stock whose price is $78, is 30%. The risk-free rate is 3% per annum (continuously compounded) for all maturities. Calculate values for u, d, and p when a two-month time step is used. What is the value of a four-month European call option with a of $80 given by a two-step binomial tree. Suppose a trader sells 1,000 options (10 contracts). What position in the stock is necessary to hedge the trader’s position at the time of the trade?
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.