Stock of the PDQ company is selling today at the price So = $60 per share. European put options on the stock with exercise date T = 1 and strike price K = $60 are selling today at the price Po = $4.50 per option. An investor with no initial capital believes that the stock price is going to drop, so she constructs a portfolio by selling short 300 shares of stock and using all of the proceeds of the short sale to purchase options of the type described above. She makes no transactions between t = 0 and t = 1. Find the value of her portfolio at t = 1 (i.e. find X1) if = (a) Si = $30. (b) S = $90. Stock of the PDQ company is selling today at the price So = $60 per share. European put options on the stock with exercise date T = 1 and strike price K = $60 are selling today at the price Po = $4.50 per option. An investor with no initial capital believes that the stock price is going to drop, so she constructs a portfolio by selling short 300 shares of stock and using all of the proceeds of the short sale to purchase options of the type described above. She makes no transactions between t = 0 and t = 1. Find the value of her portfolio at t = 1 (i.e. find X1) if = (a) Si = $30. (b) S = $90. Stock of the PDQ company is selling today at the price So = $60 per share. European put options on the stock with exercise date T = 1 and strike price K = $60 are selling today at the price Po = $4.50 per option. An investor with no initial capital believes that the stock price is going to drop, so she constructs a portfolio by selling short 300 shares of stock and using all of the proceeds of the short sale to purchase options of the type described above. She makes no transactions between t = 0 and t = 1. Find the value of her portfolio at t = 1 (i.e. find X1) if = (a) Si = $30. (b) S = $90. Stock of the PDQ company is selling today at the price So = $60 per share. European put options on the stock with exercise date T = 1 and strike price K = $60 are selling today at the price Po = $4.50 per option. An investor with no initial capital believes that the stock price is going to drop, so she constructs a portfolio by selling short 300 shares of stock and using all of the proceeds of the short sale to purchase options of the type described above. She makes no transactions between t = 0 and t = 1. Find the value of her portfolio at t = 1 (i.e. find X1) if = (a) Si = $30. (b) S = $90