4. You are the market maker for the trending social media fund, BUZZ. Your customer wants to sell 200 Puts with a strike price of $25 and 28 days until expiration. You delta-gamma hedge your position for 1 day using Puts with a strike price of $20 and half a year until expiration. The risk- free interest rate is 10%. BUZZ P(25, 28 Days) after t Days 0 1 23.00 Stock Price Put Price Put Delta Put Gamma 24.75 1.39759 -0.47924 0.11624 2.40072 -0.68820 0.11308 BUZZ P(20, 183 Days) after t Days 0 1 Stock Price Put Price Put Delta Put Gamma 24.75 1.00742 -0.17855 23.00 1.36457 -0.237701 0.03813 0.02983 a. Compute your profit/(loss) from hedging after 1 day. Show all work. (Ans. = -$1.50) b. Compute the cash used to rebalance the portfolio on Day 1. Show all work. 4. You are the market maker for the trending social media fund, BUZZ. Your customer wants to sell 200 Puts with a strike price of $25 and 28 days until expiration. You delta-gamma hedge your position for 1 day using Puts with a strike price of $20 and half a year until expiration. The risk- free interest rate is 10%. BUZZ P(25, 28 Days) after t Days 0 1 23.00 Stock Price Put Price Put Delta Put Gamma 24.75 1.39759 -0.47924 0.11624 2.40072 -0.68820 0.11308 BUZZ P(20, 183 Days) after t Days 0 1 Stock Price Put Price Put Delta Put Gamma 24.75 1.00742 -0.17855 23.00 1.36457 -0.237701 0.03813 0.02983 a. Compute your profit/(loss) from hedging after 1 day. Show all work. (Ans. = -$1.50) b. Compute the cash used to rebalance the portfolio on Day 1. Show all work