Question: Data: So = 108; X = 112; 1 + r = 1.08. The two possibilities for Snare 144 and 80. a. The range of Sis

Data: So = 108; X = 112; 1 + r =

Data: So = 108; X = 112; 1 + r = 1.08. The two possibilities for Snare 144 and 80. a. The range of Sis 64 while that of Pis 32 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. What is the present value of the portfolio? (Round your answer to 2 decimal places.) Present value

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