A stock is currently priced at 25 in 6 months it will be, Financial Management

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A stock is currently priced at 25 in 6 months it will be

A stock is currently priced at $25. In 6 months it will be either $26 or $30. The risk-free rate is 12% per annum with continuous compounding.

(b) What is the price of a European put option expiring in 6 months with strike price $28.

(c) If your portfolio is long this European put, how many stocks should your portfolio have to be risk-free?

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