The following questions are based on option pricing on the one-time step binomial tree world. Suppose a stock S has price of $100 at time 0. At time 1, the price of the stock S can either go up to $150 or go down to $80. There is also a risk-free asset (bond) in this world. A $1 investment in the risk-free asset will result in $1.1 at time 1 regardless of the state of the world (r = 10% return from time 0 to time 1). We are interested in pricing options at time 0 whose underlying is this stock S. Options expire at time 1 of course.

Question- If you have a replicating portfolio with stock S and cash amount B of risk-free asset such that this portfolio has exactly the same payoff as the put option in the previous problem (strike price $110), what would be the dollar value of stock S at time 0, rounded to the nearest cents?

	-$44.86
	$46.86
	-$42.86
	$44.86
	-$46.86
	$42.86