You would like to be holding a protective put position on the stock of XYZ Company to lock in a guaranteed minimum value of $110 at year-end. XYZ currently sells for $110. Over the next year, the...

Extracted text: You would like to be holding a protective put position on the stock of XYZ Company to lock in a guaranteed minimum value of $110 at year-end. XYZ currently sells for $110. Over the next year, the stock price will either increase by 5% or decrease by 5%. The T-bill rate is 4%. Unfortunately, no put options are traded on XYZ Company. Required: a. How much would it cost to purchase if the desired put option were traded? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost to purchase b. What would be the cost of the protective put portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost of the protective put portfolio