You purchased some units of TTK Corp stock on January 1, 2021 at the price of $300. Suppose today is July 1 and the current stock price of TTK Corp is $390. The market value of the TTK Corp stock you own is currently at 975,000 dollars. Since you have achieved large gains over the past six months you would like to lock in through the end of the year. Suppose the stock has an estimated volatility of 15% per annum and the company is expected to pay a cash dividend of $5 per share on October 1, 2021. The risk free interest rate is 5% per annum. c) Suppose that you would like to do achieve the hedging goal in (a) while keeping the overall cost of hedging to be as close to zero as possible. Which of the following options that you are most likely to pick to add to the position you proposed in (a) to achieve your objective? Explain how and why. (8 marks) Option type Put Put Put Put Put Put Call Call Call Call Call Call Strike price 350 425 500 350 425 500 350 425 500 350 425 500 Time to maturity (yr) 1 1 1 0.5 0.5 0.5 1 1 1 0.5 0.5 0.5 You purchased some units of TTK Corp stock on January 1, 2021 at the price of $300. Suppose today is July 1 and the current stock price of TTK Corp is $390. The market value of the TTK Corp stock you own is currently at 975,000 dollars. Since you have achieved large gains over the past six months you would like to lock in through the end of the year. Suppose the stock has an estimated volatility of 15% per annum and the company is expected to pay a cash dividend of $5 per share on October 1, 2021. The risk free interest rate is 5% per annum. c) Suppose that you would like to do achieve the hedging goal in (a) while keeping the overall cost of hedging to be as close to zero as possible. Which of the following options that you are most likely to pick to add to the position you proposed in (a) to achieve your objective? Explain how and why. (8 marks) Option type Put Put Put Put Put Put Call Call Call Call Call Call Strike price 350 425 500 350 425 500 350 425 500 350 425 500 Time to maturity (yr) 1 1 1 0.5 0.5 0.5 1 1 1 0.5 0.5 0.5