Question: We will derive a two-state put option value in this problem. Data: Sg = $180, X $190,1 + = 110. The two possibilities for S,

We will derive a two-state put option value in this problem. Data: Sg = $180, X $190,1 + = 110. The two possibilities for S, are $210 and $110 Required: .. The range of Sis $100 while that of Pis $80 across the two states. What is the hedge ratio of the put? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Hedge ratio 0.00 b. Forma portfolio of four shares of stock and five puts What is the (nontandom) payoff to this portfolio? (Round your answer to 2 decimal places.) Nonrandom payoff c. What is the present value of the portfolio? (Round your answer to 2 decimal places.) Present value 5 763 64 d. Given that the stock currently is selling at $180, calculate the put value (Do not round intermediate calculations and round your answer to 2 decimal places.) Put value

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