10

We wil derive a two-state put option value in this problem. Data: 5 = 240, X=250, 1 * *1.1. The two possibities for Sale 270 and 170 a. The range of Sis 100 while that of Pis to across the two states. What is the hodge rate of the pur? (Negative value should be indicated by a minus sign. Round your answer to 2 detimal pla Hedge ratio b-1. Forma portfolio of a shores of stock and 5 puta. What is the (nonrendom) payoff to thin portfolio? (Round your answer to 2 decimal places Nonrandom payoft 52. What is the prosent value of the portfolo? (Round your answer to 2 decimal place.) Present value 3 c. Given that the stock currently is soling at 240, calculate the put value (Round your answer to 2 decimal places) Put value $