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What is your initial replicating portfolio if you are replicating a put on a stock...

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Accounting

What is your initial replicating portfolio if you are replicating a put on a stock while the puts price is $4, its delta is -0.4, the stock price is $40, and the annual (continuously compounded) risk-free interest rate is 10%. In 10 weeks, the stock price, put price, and delta have gone to $35, $8, and -0.8, respectively. Before and after rebalancing at 10 weeks, what is your replicating portfolio (show your work and be specific for this) and what was the replication error? What factors might account for the replication error? Explain.

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