The current spot price of a stock is $86.49, the expected rate of return of the stock is 9.8%, and the volatility is 24%. The risk-free rate is 5.4%.

Compute the price of a derivative whose payoff in 10 months is

^0.537+100 if S < $50.00, where S denotes the stock price in 10 months ^0.537 if S $50.00