One-Period Binomial Model for Put Option

So the materials give an example of how to calculate the hedge ratio (delta) and have a risk free arbitrage by buying or selling calls that are under or over priced, and hedging with fraction shares of the stock (shorting fractional shares when buying calls and buying fractional shares when selling calls). Anyone care to take a stab at how this would work with puts?

The eocs actually have you calculate this both ways, but it will also be helpful to know that your hedge ratio and the delta are not synomynous. If you have a question on one of the eoc’s I would be happy to try and help however I can -Andrew

Thanks - I will review the EOC q’s - not quite there yet.