$(b)$ Assume the simple market model where the money position $at$ present time $isA(0)=$

$100,$ and after one time step $A(1)=105.$ The underlying asset present value $is$

$S(0)=200$ and assume that the values $ofit$ after one time step will $be$

Saved $to$ this $PC$ With the probability $p$

$S(1)=\{\begin{array}{ccc}222& \text{w}\text{i}\text{t}\text{h}\text{t}\text{h}\text{e}\text{p}\text{r}\text{o}\text{b}\text{a}\text{b}\text{i}\text{l}\text{i}\text{t}\text{y}& \end{array}$

$190,1-p$

Using the method $of$ the replicating portfolio compute the European put option price

with maturity after $1$ step and the strike price being $200.$