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You are a provider of portfolio insurance and are establishing a four$-$year program. The portfolio you manage is currently worth $$150$ million, and you promise to provide a minimum return of $0\%.$ The equity portfolio has a standard deviation of $25\%$ per year, and T$-$bills pay $7\mathrm{.}5\%$ per year. Assume that the portfolio pays no dividends.

Required:

a$-1.$ How much of the portfolio should be sold and placed in bills? $($Input the value as a positive value. Do not round intermediate calculations and round your final percentage answer to $2$ decimal places.$)$

a$-2.$ How much of the portfolio should be sold and placed in equity? $($Input the value as a positive value. Do not round intermediate calculations and round your final percentage answer to $2$ decimal places.$)$

b$-1.$ Calculate the put delta and the amount held in bills if the stock portfolio falls by $3\%$ on the first day of trading, before the hedge is in place? $($Input the value as a positive value. Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

b$-2.$ What action should the manager take? $($Enter your answer in millions rounded to $2$ decimal places. Do not round intermediate calculations.$)$The manager must sell$/$buy$\_\_\_$$$\_\_\_\_\_\_\_\_$million of $\_\_\_\_\_$equity$/$bills and use the proceeds to buy bills$/$equity

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