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1) You own one share of stock in Tesla. Tomorrow, the price of Tesla will be as described below: Probabilit y of State of the

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1) You own one share of stock in Tesla. Tomorrow, the price of Tesla will be as described below: Probabilit y of State of the world 1 2 Stock Price 100 120 140 160 180 200 3 Event 0.18 0.14 0.22 0.24 0.09 0.13 4 5 6 You can buy or sell call options at 157 expiring tomorrow for 8.38. You can also buy or sell put options at 141 expiring tomorrow for 10.54. A) (10 points) What is the percentage standard deviation of your position in Tesla? B) (10 points) What is the percentage standard deviation of your position in Tesla after you choose to buy or sell the options available in order to reduce your risk

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