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 $1.1at time 1regardless 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 1of course.

On the basis of above information, answer the following 4 Questions.

Question- What is the Delta of the put option with strike price $110?

Question- What is the price of this put option with strike price $110, rounded to the nearest cents?

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?

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 amount B of risk-free security at time 0, rounded to the nearest cents?