part c

Check my work 10 10 Dans You would like to be holding a protective put position on the stock of XYZ Co to lock in a guaranteed minimum value of $102 at year. end. XYZ currently sells for $102. Over the next year the stock price will increase by 7% or decrease by 7%. The Tibetrate is 4% Unfortunately, no put options are traded on XYZ CO a. Suppose the desired put option were traded How much would it cost to purchase? (Do not round Intermediate calculations and round your final answer to 2 decimal places) Costa purch 147 Terencer b. What would have been the cost of the protective put portfolio? (Do not round Intermediate calculations and round your final answer to 2 decimal places) $ 103.47 Cost of the protective but ponto c. What portfolio position in stock and Tobills will ensure you a payoff equal to the payoff that would be provided by a protective put with X = 102? Show that the payoff to this portfolio and the cost of establishing the portfolio match those of the desired protective put (Do not round Intermediate calculations and round your final answer to 2 decimal places) Portfolio Buy 05 tretinos 5.10.14 54757 154.36 47.45 4013 03.00 10700