Find the price of a 3-month European call option on a dividend-paying stock with S(0) = $50 and K = $51. The dividend is due at the end of 1 month and is equal to $2.50. Assume that r = 5% and σ = 12%. Use the binomial tree model with three time intervals. Furthermore, find values of ∆, Γ, and the trading strategies at each node on the tree where they are defined.

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