The point of purchasing a European option is to limit the risk of a decrease in the pershare price of the stock. Suppose you purchased 200 shares of the stock at $28 per share and 75 six-month European put options with an exercise price of $26. Each put option costs $1.

3. Build a (spreadsheet) model to show the value of the portfolio with options and without options.

4. Use data tables to shows the value of the portfolio with options and without options for a share price in six months between $15 and $35 per share in increments of $1.00.

5. Discuss the value of the portfolio with and without the European put options. Which one (with or without) is more profitable?