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 StDCl-C at a given price, called the exercise price, at a particular pomt in time after the purchase of the option. For example, suppose you purchase a sixfmonth European put option for a share of stock with an exerCise price of 526. If six months laterr the stock price per share is $26 or more, the option has no value. If in six months the stock price is lower than $26 per sharer 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 522.50, you can purchase a share of the stock for 522.50 and then Lise the put option to immediately sell the share for 526. Your profit would be the difference, $26 522.50 2 53.50 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 2 $2.50 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 stock at $28 per share and 65 sinmonth European put options with an exercise price of 526. Each put option costs $1. (a) 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 400 0 $20 $21 $22 $23 $25 $26 $27 $ $ $ $ $24 $ $ $ $ $28 $ 000000000 $29 $ (b) Discuss the value of the portfolio with and Without the European put options. . 'A a\" (b) Discuss the value of the portfolio with and without the European put options. The lower the stock price, the more beneficial the put options. The options are worth nothing at a stock price of $ or higher There is a benefit from the put options to the overall portfolio for stock prices of $ lower Hide Feedback Partially Correct Check My Work