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You are faced with the probability distribution of the HPR on the stock market index fund given in Spreadsheet 4.1, below. Suppose the price of

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You are faced with the probability distribution of the HPR on the stock market index fund given in Spreadsheet 4.1, below. Suppose the price of a put option on a share of the index fund with exercise price of $110 and maturity of one year is $12 a. What is the probability distribution of the HPR on the put option? (Remember that the cost of the index fund is $100 per share, and the cost of the put option is $12.) (Round your answer to 2 decimal places. Omit the sign from your response. Indicate negative values by a minus sign.) b. What is the probability distribution of the HPR on a portfolio consisting of one share of the index fund and a put option? (Round your answer to 1 decimal place. Omit the from your response.)

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