Q1) Suppose that today’s price of ABC stock is $100 and it is known that price can move up by 15% or can move down by 10

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answerhappygod
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Q1) Suppose that today’s price of ABC stock is $100 and it is known that price can move up by 15% or can move down by 10

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Q1) Suppose that today’s price of ABC stock is $100 and it is
known that price can move up by 15% or can move down by 10% in
3-months. A riskless portfolio is comprising of delta stocks of ABC
and a 3-months PUT option on ABC stock with a strike price of $105.
If the 3-months risk-free rate is 10%.
Please solve with steps and forulma please
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