We will derive a two-state put option value in this problem. Data: S = $300; X = $310; 1 + r=1.10. The two possibilities for ST are $350 and $150. Required: a. The range of S is $200 while that of P is $160 across the two states. What is the hedge ratio of the put? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Hedge ratio (0.45) b. Form a portfolio of four shares of stock and five puts. What is the (nonrandom) payoff to this portfolio? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Nonrandom payoff $ 0.64 X