A stock is currently priced at $40.00. The risk free rate is 9.9% per annum with continuous compounding. In 6 months, its price will be either $46.40 or $34.80.

(a) If your portfolio is long a 6 month European put with strike $38.33, how many stocks should you acquire to make your portfolio risk-free over the next 6 months?

(b) If your portfolio is short a bond which pays $52.00 in 6 months as well as short 17 6-month European calls, each with strike $38.33, how many stocks should you acquire to make your portfolio risk-free in 6 months?