14 We will derive a two-state put option value in this problem. Data: 5o = 100; X= 1101 + r = 110. The two possibilities for Spare 130 and 80. o. The range of Sis 50 while that of Pis 30 across the two states. What is the hedge ratio of the put? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Note: When calculating the put option premium using the binomial model, the hedge ratio will be negative. It is interpreted as the number of shares short in order to hedge the risk of writing 1 coll option. 5 88 points spoed Hedge ratio eBook b-1. Form a perfectly hedged portfolio of three shares of stock and five puts. What is the (nonrandom) payoff to this perfectly hedged portfolio? (Round your answer to 2 decimal places.) Note: Although the call writer is short the stock shares to hedge the price risk of being short (having written) the put option, the perfectly hedged portfolio is long the three shares of stock and long the five puts in order to ensure a risk-free positive payoff. Print References Hedged Portfolio Payoff b-2. What is the present value of the portfolio? (Round your answer to 2 decimal places.) Present value S c. Given that the stock currently is selling at 100, calculate the put value. (Round your answer to 2 decimal places.) Note: Remember that the perfectly hedged portfolio is long the three shares of stock and long the five puts in order to ensure a risk-free positive payoff. Put value S