Question: Let S = $ 1 0 0 , K = $ 9 5 , r = 8 % , T = 0 . 5 ,

Let S = $100, K = $95, r =8%, T =0.5, and \delta =0. For simplicity, let u =1.3, d =0.8 and n =1(that is,1 period). When constructing the binomial tree for the European call option, what is B (Dollar Amount Borrowed in the replicating portfolio) at the first node (Time 0)?
Question 4 options:
-$53.80
-$33.82
-$63.80
-$23.60
-$73.28

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