Please show the work:

Binomial Option Pricing Case 1: A stock is currently priced at $39/share and pays no dividends. The periodic risk-free rate of interest is 2%. The up factor of 1.25 and a down factor of 0.8. Binomial Option Pricing Case 1: In a one-period binomial tree option pricing model, if a European put option with a strike price of 36 is undervalued, the synthetic put used in an arbitrage with 10,000 puts is formed with:

	A.	a short position of 2735 shares and a long bond of 133332 priced at the risk free rate.
	B.	a long position of 2735 shares and a loan of 130717 borrowed at the risk free rate.
	C.	a short position of 2735 shares and a loan of 133332 borrowed at the risk free rate.
	D.	a long position of 2735 shares and a long bond of 130717 priced at the risk free rate.