A put option in finance allows you to sell a share of stock at a given price in the future. There are different types of put options. A European put option allows you to sell a share of stoclc at a given price, called the exercise price. at a particular point in time after the purchase of the option. For example, suppose you purchase a Six-month European put option for a share of stock with an exercise price of $26. If six months later, the stock price per share is 526 or more, the option has no value. If in six months the stock price is lower than $26 per share, then you can purchase the stock and immediately sell it at the higher exercise price of 526. If the price per share in six months is $22.50, you can purchase a share of the stocl-c for 522.50 and then use the put option to immediately sell the share for $26. Your profit would be the difference. 526 522.50 : $3.50 per share. less the cost of the option. If you paid $1.00 per put option, then your profit would be $3.50 51.00 : 52.50 per share. The point of purchasing a European option is to limit the risk of a decrease in the perishare price of the stock. Suppose you purchased 200 shares of the stoclc at 528 per share and 60 sixfmonth European put options With an exercise price of 526. Each put option costs 51. (3) Using data tables, construct a model that shows the value of the portfolio with options and Without options for a share price in Six months between $20 and $29 per share in increments of $1.00. what is the benefit of the put options on the portfolio value for the different share prices? For subtractive or negative numbers use a minus sign even if there is a + sign before the blank (Example: -300). If you answer is zero, enter \"0". Share Price Benefit of Options $20 5 $21 5 $22 5 $23 5 $24 5 $25 5 o $26 5 $27 5 $23 5 $29 5 (b) Discuss the value of the portfolio With and without the European put options. The lower the stock price, thel more V ' benefICial the put options. The options are worth nothing at a stock price of $ 25 or ' higher V ' . There is a benefit from the put options to the overall portfolio for stock prices of $ 24 or lower V