# Replicate Option Given only 1 State

I am given a question which I think is missing the necessary information to solve. The question is: Suppose a stock is valued at \$75 today. And the option will pay \$1 the first time the stock reaches \\$100. Find the price of the option and the replicating portfolio.

First of all, only one state is given so you get infinite solutions for the possible numbers of stocks and bonds. Also, suppose we are replicating the option with stocks and bonds, the risk-free interest rate is not even given so how are we supposed to know the price of the bond at this future time. Is this question solvable with the information given?

-
Why downvote??? –  Mat.S Feb 17 at 3:28
You have no other information? Nothing at all? –  SRKX Feb 17 at 11:00
And please, at least rephrase the title of your question, this one is SO vague I should close it straightaway... –  SRKX Feb 17 at 11:00
What happened to your question "What is Larger (Call + Put vs. Price of Stock)?"? –  Bob Jansen Feb 17 at 13:39
@SRKX: Yes, that is all the information I am given, so I think it's a weird question and I made the title more specific. –  Mat.S Feb 17 at 15:15