4. Consider a European put option on a non-dividend paying stock. Assume P=100, EX=110, T=1, r=2% (continuous compounding), o=40%, and that the Black-Scholes model holds. a. What is the delta (hedge ratio) for this put option, i.e., what fraction of a share of stock is in the initial replicating portfolio (with a negative number indicating a short position)? (2 points) b. How much do you need to lend (dollar value of initial position, with positive numbers indicating lending in this case) to replicate this put option? (2 points) What is the value of this put option? (2 points) c. 4. Consider a European put option on a non-dividend paying stock. Assume P=100, EX=110, T=1, r=2% (continuous compounding), o=40%, and that the Black-Scholes model holds. a. What is the delta (hedge ratio) for this put option, i.e., what fraction of a share of stock is in the initial replicating portfolio (with a negative number indicating a short position)? (2 points) b. How much do you need to lend (dollar value of initial position, with positive numbers indicating lending in this case) to replicate this put option? (2 points) What is the value of this put option? (2 points) c