Question: 14 14. Rock Solid has a stock portfolio worth $100 million, which tracks closely with the s&P 500. The portfolio manager fears that a decline

14. Rock Solid has a stock portfolio worth $100 million, which tracks closely with the s&P 500. The portfolio manager fears that a decline is coming therefore buys put options to protect the entire portfolio when the S&P 500 was $1,013. The strike price the entered into was at $1,013. Suppose after a year the S&P 500 is $965 and the portfolio is worth $94 million. The options premium is $1 million. What is the value of the total position? A. $94,895,360 B. $93,000,000 C. $98,738,401 D. $97,738,401

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