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5. A barrier down-and-in put option expires in 1 year. The strike price of the option is 55 and the barrier is 60. The

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5. A barrier down-and-in put option expires in 1 year. The strike price of the option is 55 and the barrier is 60. The price of the option is 1.59. The price of a barrier down-and-in call option with the same expiry date, strike price, and barrier is 10.22. You are given: i) the current price of the stock is 70, ii) the underlying stock pays no dividends, and iii) the continuously compounded risk-free interest rate is 0.05. Calculate the price of a barrier down-and-out put option with the same expiry date, strike price, and barrier. (A) 0 (B) 8.05 (C) 9.05 (D) 10.05 (E) 11.05

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