Question: Data: 5o = 107; X = 114; 1 + r= 1.08. The two possibilities for Sare 155 and 73. a. The range of Sis 82

Data: 5o = 107; X = 114; 1 + r= 1.08.

Data: 5o = 107; X = 114; 1 + r= 1.08. The two possibilities for Sare 155 and 73. a. The range of Sis 82 while that of Pis 41 across the two states. What is the hedge ratio of the put? (Round your answer to 2 decimal places. Negative value should be indicated by a minus sign.) Hedge ratio b. Form a portfolio of one share of stock and two puts. What is the (nonrandom) payoff to this portfolio? Nonrandom payoff C c. What is the present value of the portfolio? (Round your answer to 2 decimal places.) Present value

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