A stock is worth $97. A European put option with strike price of $95 and one year to maturity on this stock has a market price of $3.

a.)How much will it cost you if you buy 100 shares of stock and 100 shares (also referred to as one contract) of the put option? (You have constructed a protective put strategy.) This is the initial value of your portfolio.

b.)After one year, what is the value of your portfolio if the stock price is $50? What is the percentage return of your investment?

c.) After one year, what is the value of your portfolio if the stock price is $150? What is the percentage return of your investment?