Question: please i want correct answer... You would like to be holding a protective put position on the stock of XYZ Company to lock in a

please i want correct answer...

You would like to be holding a protective put position on the stock of XYZ Company to lock in a guaranteed minimum value of $90 at year-end. XYZ currently sells for $90. Over the next year, the stock price will either increase by 6% or decrease by 6%. The T-bill rate is 5\%. Unfortunately, no put options are traded on XYZ Company. Required: a. How much would it cost to purchase if the desired put option were traded? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What would be the cost of the protective put portfollo? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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