You would like to hold a protective put position on the stock of Picard Enterprise to lock in a guaranteed minimum value of $50 at year-end. Picard Enterprise currently sells for $50. Let's assume that one knows for sure that the stock price will increase by 10% or decrease by 10% over the next year. Unfortunately, no put options are traded on Picard Enterprise. What portfolio position in stock and T-bills will ensure you a payoff equal to the payoff that would be provided by a protective put portfolio (stock plus put with strike X = $50)?

a.1 share of stock and equal to the present value of 25 a year from now

b. share of stock and $25 in bills

c.1 share of stock and $50 in bills

d. share of stock and bills equal to the present value of 27.5 a year from now