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You are trying to price a put option using the binomial model. The current stock...

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Finance

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You are trying to price a put option using the binomial model. The current stock price is $100, the exercise price is $110, and the risk- free rate is 10%. The two possibilities for sy are 130 and 80. a. What is the hedge ratio of the put? (Round your answer to 1 decimal place. Negative value should be indicated by a minus sign.) Hedge ratio b. Form a portfolio of three shares of stock and five puts. What is the (nonrandom) payoff to this portfolio? Payoff c. What is the present value of the portfolio? (Round your answer to 2 decimal places.) Present value d. Calculate the put value. (Round your answer to 2 decimal places.) Put value

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