• A car can be rented for Php 3000 for three days. But after 3 days, an additional of Php 500 is added. How much will be the amount of a rent-a-car for 7 days?

  
  

 

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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 stock 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 $26 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 $26. If the price per share in six months is $22.50, you can purchase a share of the stock for $22.50 and then use the put option to immediately sell the share for $26. Your profit would be the difference, $26-$22.50 = $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 - $1.00 = $2.50 per share. 1 European Put Option B 2 3 Parameters 4 Costs of Put Option $1.00 5 Exercise Price $26.00 6 Horizon (months) 6 7 8 Price- End of Horizon 9 10 Model 11 Value of the Option 12 Cost of Put Option 13 Profit per Option 14 15 $22.50 Managerial Report 1. Build a (spreadsheet) model to calculate the profit of this European put option. (20%) (Hint: Follow the above to create the parameters and the formulas for Model) 2. Construct a data table that shows the profit per share for a share price in six months between $10 and $30 per share in increments of $1.00. (25%)