$(2$ points$)$ In a one$-$period trinomial tree, the stock price can take three possible values in one year

from now: $S_u>S_m>S_d.$ The stock price equals and $\{$:$S_d)$ with a risk$-$neutral probability

of $q_u(q_m$ and $q_d).$ Further, the one year risk$-$free rate equals $1\%.$ The price of a one year European

put option with strike price $K$ such that $\frac{q_d(K-S_m)}{1\mathrm{.}01}\frac{q_u(K-S_u)}{1\mathrm{.}01}\frac{q_d(S_d-K)}{1\mathrm{.}01}\frac{q_d(K-S_d)}{1\mathrm{.}01}\frac{q_u(K-S_d)}{1\mathrm{.}01}{S}_d,is$ given $by$:

$A.\frac{q_d(K-S_m)}{1\mathrm{.}01}$

$B.\frac{q_u(K-S_u)}{1\mathrm{.}01}$

$C.\frac{q_d(S_d-K)}{1\mathrm{.}01}$

$D.\frac{q_d(K-S_d)}{1\mathrm{.}01}$

$E.\frac{q_u(K-S_d)}{1\mathrm{.}01}$