Use the table below for questions 5 and 6 . Today is July 6th. The continuously compounded riskfree rates are 0.0503( July 17th),0.0535 (August 21st),0.0571 (October 16th). The stock price is $165.13 FINA 416-01 Derivatives and Risk Management 6) Use the Black-Scholes-Merton European put option pricing formula. Price the October 165 put. Use the October 165 call calculated in the previous question. a. What is the theoretically fair value of the October 165 put? b. Based on your answer, recommend a risk-less strategy using the delta-hedge. c. If the stock price decreases by $1, how will the option position offset the loss on the stock? Use the table below for questions 5 and 6 . Today is July 6th. The continuously compounded riskfree rates are 0.0503( July 17th),0.0535 (August 21st),0.0571 (October 16th). The stock price is $165.13 FINA 416-01 Derivatives and Risk Management 6) Use the Black-Scholes-Merton European put option pricing formula. Price the October 165 put. Use the October 165 call calculated in the previous question. a. What is the theoretically fair value of the October 165 put? b. Based on your answer, recommend a risk-less strategy using the delta-hedge. c. If the stock price decreases by $1, how will the option position offset the loss on the stock