2. An asset with current price $10 would either raise to $15 on the next year, or drop to $8 in the next year. The effective discount rate is 9% yearly. (a) ( 2 points) A put option is available on the market with strike price $11. What is the hedge ratio of this put option? (b) (3 points) Now, replicate the put option with the bond and the underlying asset. Also, draw the payoff tree-diagram to show that your portfolio indeed replicate the put option. (c) (2 points) Hence, find the price of the put option