Data: S ₀ = 108; X = 120; 1 + r = 1.1. The two possibilities for ST are 130 _and 90.

a.	The range of S is 40 while that of P is 30 in both states. What is the put option coverage ratio? (Round your answer to 2 decimal places. The negative amount should be indicated with a minus sign.)

coverage ratio

b-1.	Build a portfolio of three stocks and four put options. What is the (non-random) payoff for this portfolio? (Omit the "$" sign in your answer.)

non-random payment

ps

b-2.	What is the present value of the portfolio? (Round your answer to 2 decimal places. Omit the "$" sign in your answer.)

Present value

ps

C.	Given that the stock currently sells for $108, calculate the sale value. (Round your answer to 2 decimal places. Omit the "$" sign in your answer.)

put value

ps