Question: We will derive a two-state put option value in this problem. Data: S0=$170;X= $180;1+r=1.10. The two possibilities for ST are $210 and $90. The range

We will derive a two-state put option value in this problem. Data: S0=$170;X= $180;1+r=1.10. The two possibilities for ST are $210 and $90. The range of S is $120 while that of P is $90 across the two states. What is the hedge ratio of the put? 0.750.600.650.550.70

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