Data: S₀ = 107; X = 118; 1 + r = 1.08. The two possibilities for S_T are 125 and 90.

a. The range of S is 35 while that of P is 28 across the two states. What is the hedge ratio of the put? (Round your answer to 2 decimal places. Negative value should be indicated by a minus sign.)

b. Form a portfolio of four shares of stock and five puts. What is the (nonrandom) payoff to this portfolio?

c. What is the present value of the portfolio? (Round your answer to 2 decimal places.)

d. Given that the stock currently is selling at 107, calculate the put value. (Do not round intermediate calculations. Round your answer to 2 decimal places.)