Consider a stock paying continuous dividends of 8 = 5%. Assume r = today's stock price of So = 90. a) You sell 100 Calls with strike K = 0.07, = 0.27 and 95 and expiration in 45 days (assume 365 days in a year). You also construct a Delta hedge to manage your risk. If tomorrow (1 day later) stock price rises to $90.50, find your net profit/loss from your hedged portfolio. Hint: don't forget about dividends! b) Repeat this problem for the case of selling 100 Puts with strike K = 95 and all other parameters staying the same. Compare the answers you get in (a) and (b).