You are to assume that an asset S = (St)fu follows the Black-Scholes model with SD = 100, o' = 20%, ,u. = 10% and the risk-free rate is constant at 2%. You have just sold an at-the-money i year put written on this asset and you wish to hedge it. Assume that, if needed, you may also trade in a call option (on the same asset) struck at K = 100 (maturity % year}, the stock, and the bank account. As well, you will account for transaction costs by assuming you are charged 0.00555 on every one unit of equity traded, and 001$ on every unit of options traded. [NOTE the catt that you trade when Gamma hedging has a FIXED maturity date, but that implies its time to maturity keeps reducing as time ours forward just alike the put that you said] 1. Compare the move-based with the time-based hedging strategy with delta hedging. Assume a base band of 0.05. 2. Compare the move-based with the time-based hedging strategy with delta and gamma hedging. 3. What happens if the real-world lP' volatility is o' = 15% but the risk-neutral Q volatility is o" = 20%? 4. Investigate the role that the rebalancing-band in :5. plays on the hedge. Comment on any observations