Question: Problem 21-9 Data: So=107; X=110: 1 + s = 112. The two possibilities for Sy are 155 and 95 a. The range of Sis 60

Problem 21-9 Data: So=107; X=110: 1 + s = 112. The two possibilities for Sy are 155 and 95 a. The range of Sis 60 while that of Pis 15 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 107, calculate the put value (Do not round intermediate calculations. Round your answer to 2 decimal places.) Put value

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