Company A has issued a zero-coupon bond maturing in one year, the face value of which equals $100. The market price of this bond is $90. There is a probability that the company may default on its bond at the maturity date, and if default happens, bondholders will only get $25. In the meantime, the market price of a one-year zero-coupon bond issued by the Treasury Department (face value being $100) is trading at $95.

Now consider a derivative contract on Company A's bond. This contract pays $75 if the company default and nothing if the company does not. What should be the no-arbitrage price of this contract?

Group of answer choices

A. 100

B. 5

C. 75

D. 25