We will derive a two-state put option value in this problem. Data: S₀ = 220; X = 230; 1 + r = 1.1. The two possibilities for S_T are 250 and 150. a. The range of S is 100 while that of P is 80 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.)

b. Form a portfolio of 4 shares of stock and 5 puts. What is the (nonrandom) payoff to this portfolio? (Round your answer to 2 decimal places.)

c. What is the present value of the portfolio? (Round your answer to 2 decimal places.)

d. Given that the stock currently is selling at 220, calculate the put value. (Round your answer to 2 decimal places.)