You own 100 shares of a stock and you are worried the price may fall in three months. The premium of a three-month put option on the stock with an exercise price of $75 is $5 per share. If you used a protective put strategy to hedge your stock position (ie, you bought one put option), what is your portfolio value if in three months the stock price drops to $55? Note one option contract gives the right to buy (or sell 100 shares of the underlying stock. 57.000 56.100 $2.500 $7.500