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derive a two state put Option value in this problem. S0= 100. X=110; 1+r=1.10. the two possibilities for ST are 140 anf 90. find- a-

derive a two state put Option value in this problem. S0= 100. X=110; 1+r=1.10. the two possibilities for ST are 140 anf 90. find-

a- yhe hedge ratio

b- form a portfilio if 2 shares of stick and 5 puts, what is the payiff?

c- find the present value of the portfolio

d- if the stock sells for 100, what is the value of the put?

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