Number of shares = 1,000

Current Price = 45

Expected return = 0.03

Volatility = 0.5

Put Option Strike Price = 45 (1 year maturity)

Risk Free Rate = 0

The bank has decided to charge the client 10% more than theoretical no-arbitrage price of the option, and then delta-hedge its risk exposure on a daily basis by trading the underlying stock and the risk-free asset. The bank wants to be informed about the potential profit and loss of this trade.

I am mostly confused about the bolded sentence. Can someone please help me understand this & how do I factor the 10% into my calculations??