Suppose the stock price for A.B.C Corp at 10 December 2020 is 9.35, the volatility is 0.21, the time to maturity is 1 year and the strike prices are K = 9.35, K4=7.74, calculate the premium for both put and call options using both strike prices, assume risk free rate as 0.0077 or 0.77%(10%) Suppose you have a long position in the stock on 10 December 2020. How would you hedge against price declines for a one-year period, using puts, calls, and combinations of options? Devise two different option strategies using puts, calls and combinations of options (30%) Question 2