9. An alternative: Rather than introducing a knockout barrier, you can still attain three degrees of freedom by simply reducing the depth of the floor (i.e., by providing a price guarantee for only a percentage price reduction from the floor value). Fix the floor at $55 and provide a guarantee for the first 9.35% reduction from the floor. That is, the issuer would paid min(max($55 − P, 0), 0.0935 × $55 = $5.14). The value of this guarantee is given by the difference: Put(X = $55) − Put(X = $55 − $5.14 = $49.86). Value the two puts using the Financial Options Calculator, interpret your result, and compare this