(1) Determine two to three (2-3) methods of using stocks andoptions to create a

(1) Determine two to three (2-3) methods of using stocks andoptions to create a risk-free hedge portfolio can be created.Support your answer with examples of these methods being used tocreate a risk-free hedge portfolio. (2) Examine the manner in whichoption pricing is useful in corporate finance. Illustrate theway(s) in which you would use option pricing or if not thecounter strategy you would use (or not use). Provide a rationalefor your response.