You would like to hold a protective put position on the stock of Avalon Corporation to lock in a guaranteed minimum value of $50 at year-end. Avalon currently sells for $50. Over the next year, the stock price will increase by 10% or decrease by 10%. The T-bill rate is 5%. Unfortunately, no put options are traded on Avalon Co. Suppose the desired put options with X= 50 were traded. What would be the hedge ratio for the option? Multiple Choice -1 -0.5 0.5 You would like to hold a protective put position on the stock of Avalon Corporation to lock in a guaranteed minimum value of $50 at year-end. Avalon currently sells for $50. Over the next year, the stock price will increase by 10% or decrease by 10%. The T-bill rate is 5%. Unfortunately, no put options are traded on Avalon Co. Suppose the desired put options with X = 50 were traded. How much would it cost to purchase? Multiple Choice $119 $2.38 $5 $3.33