(16 points) Luigi would like to hold a protective put position on the NintendoX Co. stock to lock in a guaranteed minimum value of $50 at year-end. NintendoX currently sells for $50. Over the next year, the stock price will increase by 10% or decrease by 10%. The T-bill rate is 5%. Unfortunately, no put options are traded on NintendoX Co. a. Suppose the desired put options with X = 50 were traded. What would be the hedge ratio for the option? (2 points) b. Form a portfolio of one share of stock and 2 shares of puts. What is the (nonrandom) payoff to this portfolio at t=1? Suppose the desired put options with X = 50 were traded. (3 points) c. Suppose the desired put options with X = 50 were traded. How much would it cost to purchase the put option? (4 points) d. What would have been the cost of a protective put portfolio? (2 points)