Question: Data: S 0 = 108; X = 118; 1 + r = 1.1. The two possibilities for S T are 156 and 80. a. The

Data: S₀ = 108; X = 118; 1 + r = 1.1. The two possibilities for S_T are 156 and 80. a. The range of S is 76 while that of P is 38 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 parentheses.)

b. Form a portfolio of one share of stock and two puts. What is the (nonrandom) payoff to this portfolio?

c. What is the present value of the portfolio? (Round your answer to 2 decimal places.)

d. Given that the stock currently is selling at 108, calculate the put value. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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