You need to calculate the price of a three-month put option on Apple Stock with an exercise price of $130. Current stock price is $118. Short-term risk-free interest rate is 0.3% for 3 months; over the options three-month life, stock price could rise to $142, or fall to $98. You want to construct a portfolio of stock and loan to replicate the investment in the option to calculate the put price. Show your work to get full credit. Keep four decimals.

(a). Will you buy or sell how many shares of stock? (10 points)

(b). Whats the loan amount? (10 points)

(c). Whats the put price? (10 points)