A stock initially selling at $100 could increase by 5% with probability of 25% or decrease by 10% with probability of 75% every year. Suppose that the annual continuous interest rate is 0%. A put option on the stock specifies an exercise price of $110 and a time to expiration of one year, what is its price using binomial pricing method? A) $16.25 B) $7.50 C) $12.50 D) None of the above