Question: Data: So = 104; X= 116:1 + r= 1.12. The two possibilities for ST are 194 and 90. a. The range of S is 104

Data: So = 104; X= 116:1 + r= 1.12. The two

Data: So = 104; X= 116:1 + r= 1.12. The two possibilities for ST are 194 and 90. a. The range of S is 104 while that of P is 26 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 four puts. What is the (nonrandom) payoff to this portfolio? Nonrandom payoff c. What is the present value of the portfolio? (Round your answer to 2 decimal places.) Present value d. Given that the stock currently is selling at 104, calculate the put value. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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