26. purchased a stock index fund at $1200 per share. To protect his loss, he also purchased an at-the-money European put optio "an at-the-money European put option the fund for S60 with three- time to expiration. Suppose stock price on the expiration day is 1400, What's Joe's expected return on his investment? 1) -12% 2) 4.8% 3) 11.1% 4) 66.7% 5) 3.17% 27. Joe purchased a stock index fund at $1200 per share. To protect his loss, he also purchased an at-the-money European put option the fund for $60 with three- month time to expiration. Suppose stock price on the expiration day is 1400 with probability of 50% and 1000 with probability of 50%. What's Joe's expected return on his investment? 1) -12% 2) 4.8% 3) 11.1% 4) 66.7% 5) 3.17%