1 - Create one example for each case: a) Speculation: Create a financial situation where using (at least) short-selling of European put options is preferable to holding a portoflio of long positions in the stock (assume a budget of $1000, stock price today S(0)=200 and put option premium =$40 ). Show a proper graph for this example. b) Repeat a) with the objective of Hedging. Show a proper graph for this example. 1 - Create one example for each case: a) Speculation: Create a financial situation where using (at least) short-selling of European put options is preferable to holding a portoflio of long positions in the stock (assume a budget of $1000, stock price today S(0)=200 and put option premium =$40 ). Show a proper graph for this example. b) Repeat a) with the objective of Hedging. Show a proper graph for this example