The Idea Behind the Binomial Model Is That

The idea behind the Binomial Model is that:

A) Investors can combine options with a risk-free asset to construct a portfolio with the same payoff as the underlying asset.
B) Investors can combine options with shares of the underlying asset to construct a portfolio with a risky payoff.
C) Investors can form a portfolio of a bond and call option which should equal the payoff of a portfolio comprised of one share of common stock and one put option.
D) Investors can combine options with shares of the underlying asset to construct a portfolio with a risk-free payoff.