Question: Data: So = 107; X = 118; 1 + r = 1.08. The two possibilities for sy are 125 and 90. a. The range of

Data: So = 107; X = 118; 1 + r =

Data: So = 107; X = 118; 1 + r = 1.08. The two possibilities for sy are 125 and 90. a. The range of Sis 35 while that of Pis 28 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.) Hedge ratio b. Form a portfolio of four shares of stock and five 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 107, calculate the put value. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Put value

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