Use the following stock and set of options to answer #1, # 2, and #3 below.

A stock, priced at $84.00, has 3-month call and put options with exercise prices of $80 and $90. The current market prices of these options are given by the following:

Exercise Price	Call	Put
$80	$7.40	$3.00
$90	$2.90	$8.40

2. Next, different scenario: Assume that you already hold a sizable block of the stock, currently priced at $84, and you want to hedge your stock to lock in a minimum value of $80 per share in 3-months from now, with a very low up-front initial cost.

a) What hedge strategy from Chapter 7 would you recommend and what would you option transactions be to set up the holding (per 100 shares of stock that you already own) And, what would be the up-front cost to set up these option positions?