Consider the one-period binomial example we studied in Class 16. At time t = 0 the stockpriceisS0 =100. Attimet=1iteithergoesupordown. Ifitgoesup,its price is S1+ = 110. If it goes down, its price is S1 = 90. Assume the interest rate is r = 1.5%. (a) Use the replicating portfolio approach to find the price of a put option expiring at t = 1, with exercise price X = 100. (b) Verify that the put-call parity formula holds. (c) Is the replicating portfolio for the put option long or short the stock? Explain why.