Suppose company A stock is last time traded at 43.26$, and our analysis shows that in one year from now, its price would either increase or decrease by 35%. (i.e. d=0.65, u=1.35) Assume that risk-free rate is 1% and the company pays no dividend in this time period.

Payoffs of -6.88 and 0

What would be replicating portfolio of bonds and stocks that could generate the same payoff of option?