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

Let S = $90, 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 (Stock Share Purchased in the replicating portfolio) at the first node (Time 0)?
Question 3 options:
0.7000
0.4889
0.7905
0.3997
0.8366

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