Financial Options and Applications in Corporate Finance. Please respond to the given:
Determine two to three methods of using stocks and options to make a risk-free hedge portfolio can be created. Support your answer with illustrations of these methods being used to make a risk-free hedge portfolio. Examine the way in which option pricing is helpful in corporate finance. Illustrate the way(s) in which you would use option pricing, or, if not, the counter strategy you would use (or not use). Give a rationale for your response.