3 A B Parameters 1 A European Put Option B 4 Costs of Put Option $1.00 5 Exercise Price 2 6 Horizon (months) 3 Parameters 7 Price per share 8 Price- End of Horizon $26.00 6 $28.00 $23.00 4 Costs of Put Option $1.00 9 5 Exercise Price $26.00 10 Model 6 Horizon (months) 7 6 11 Number of Shares Purchased 12 Number of Puts Purcased 200 75 13 8 Price- End of Horizon $22.50 14 Vaue of the Option 9 10 Model 11 Value of the Option 12 Cost of Put Option 13 14 Profit per Option 15 16 Portfolio Value with Options 17 Cost of the Portfolio with Options 18 Profit with Options 19 20 Portfolio Value without Options 21 Cost of the Portfolio without Options 22 Profit without Options 15 T