(i already give the answer, but I am not really sure why the answer is like that. my question is how I get the new node picture, why is the number of 10.99, 1.95. also, I don't know why the answer will be for(b))thanks!

10. (a) If r=0, answer the following questions for a stock price that is forecast to increase/decrease as follows over the next two periods: 105.80 92 87.4 76 72.20 Calculate the price of a put option at K=90 (8 points) The up move = 92/80 = 1.15 and the down move = 76/80-95. The risk-neutral probability where r=0: q=(1-95)(1.15-95) = .254 calculate each node using 9 and (1-9) 1.95 to find a put price of $10.99- 10.99 2.64 17.80 idth). Using the stock prices in part (a), if you are creating a hedged position by taking a long position of A in S and a short position of 1 contract in a call option with K90, how many shares of stock should you hold at time 1 when Si=92? (6 points) 100h). Using the stock prices in part (a), if you are creating a hedged position by taking a long position of A in Sand a short position of 1 contract in a call option with K-90, how many shares of stock should you hold at time 1 when S: 92? (6 points) For a call option at S, 92, the up move will have a payoff of 15.80 and the down move will have a payoff of O. If A is the number of shares of stock that offset one option, then you have the following equations: 105.8A-15.80-87.44 A.859