Suppose that on 1 July of a given year the company Brown Limited’s shares are trading at $80 each on the market. The July $80 call option is trading at $12.00 and the July $80 put option is valued at...

Suppose that on 1 July of a given year the company Brown Limited’s shares are trading at $80 each on the market. The July $80 call option is trading at $12.00 and the July $80 put option is valued at $10.00. It is also given that the risk-free rate of return on the market is 8% per annum and ABC Limited has an annual dividend rate of 5% per annum to be paid quarterly. Evaluate any two hedging strategies that the hedger can use to hedge own investment in Brown Limited.