Question 3 Consider a binomial model with u = 1.3 and d =0.9, the risk-free interest rate is 10%, and the current stock price is 100. a. What is the risk-neutral probability of the down state Ss = d.? b. What is the hedge ratio (delta) of a European put option with an exercise price X = 100 and n = 1 periods left until expiry? c. Calculate the price of a European call option with an exercise price X = 100 and n = 2 periods left until expiry