What is the hedge ratio of the put

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Reference no: EM13937175

Two-state put option value: S0=100, X=115; 1+r=1.10. The two possibilities for S(T) are 125 and 85.

a. what is the hedge ratio of the put?

b. given that the stock currently is selling at 100, compute the value of the put option.

Reference no: EM13937175

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