Question: Problem 21-9 Data: 5o = 108; X = 115; 1 + r= 1.12. The two possibilities for Smare 136 and 80. a. The range of

Problem 21-9 Data: 5o = 108; X = 115; 1 + r= 1.12. The two possibilities for Smare 136 and 80. a. The

Problem 21-9 Data: 5o = 108; X = 115; 1 + r= 1.12. The two possibilities for Smare 136 and 80. a. The range of Sis 56 while that of Pis 35 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 five shares of stock and eight 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 108. calculate the put value. (Do not round intermediate calculations. Round vour d. Given that the stock currently is selling at 108, calculate the put value. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Put value

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