Consider a European put option with the following information. Time to expiration 9 months Standard deviation 25% Exercise price 110 Stock price 100 Interest rate 2% Dividends No Use the Black-Scholes model (and the put-call parity, if needed) to compute the value of this put option. Assume an investor owns 200 shares, and there is no arbitrage. What action should she take to hedge her holding using put options? Assume the stock price changes to 95 immediately after this action (i.e., hedging her holding using put options), how much will the investor have gained or lost? Explain why the position is not perfectly hedged. Critically discuss the advantages and potential drawbacks of the Black-Scholes model. Your discussion would benefit from the inclusion of real-world examples and appropriate academic references. Support your answer with calculations and/or reasons behind