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You need to calculate the price of a six-month put option on a stock with an exercise price of $310. Current stock price is $300.

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You need to calculate the price of a six-month put option on a stock with an exercise price of $310. Current stock price is $300. Short-term risk-free interest rate=0.4% for 6 months; over the option's six-month life, stock price could rise to $360, or fall to $260. You want to construct a portfolio of stock and loan to replicate the investment in the option to calculate the put price. (a). What's the spread of possible option prices? $ (b). What's the spread of possible share prices? $ (c). Are you going to buy or sell stocks in the constructed portfolio? (d). How many shares of the stock will you buy or sell in the constructed portfolio? (keep four decimals) shares

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