You are valuing an American put option with an exercise price of $103 and one year to expiry, on a stock whose price evolution in the next year is as depicted in the two-period price tree below. That is, every six month, the stock price can either increase by a factor of 1.1, or down by a factor of 0.95. The risk-free interest rate is 6% per year, or 3% per half year. What is the payoff of the perfect hedge portfolio formed at the down node (labeled (d))?

				$121
		$110 (u)
$100				$104.50
		$95 (d)
				$90.25

Group of answer choices

$86.17

$100.83

$93.50

$78.83

Please provide an explanation if possible