Question: Let S = $100, K = $95, = 30%, r = 8%, T = 1, and = 0. Let u = 1.3, d

Let S = $100, K = $95, σ = 30%, r = 8%, T = 1, and δ = 0. Let u = 1.3, d = 0.8, and n = 2. Construct the binomial tree for a call option. At each node provide the premium, Δ, and B.

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