4. Suppose XYZ stock is currently trading at $100 per share. The volatility and dividend yield rate of the stock are 40% and 2%, respectively. The continuous compounding risk-free interest rate is 6%. Consider the 1-year 105-strike put option on the stock.

(a) What is the price of the put option?

(b) What is the delta of the put option?

(c) As a market-maker, you have short 200 put option on the stock. What positions do you take to hedge?