[HELPNEEDED]

Hey guys,

I have an exam monday and cannot for the life of me figure out a particular question:

The question is: you own 2500 shares of RIM which are currently trading at $30, over a 3month period they can go up or down by 20%. Risk free rate is 6% per annum.

You cannot sell your shares for 6months.

You want to protect your investment from falling below $60,000. A bank will insure your investment for an upfront fee of $2000.

What would you do?

If someone can help guide me in the right direction I would really appreciate it.

Thanks,

What I know is that this is a binomial tree that has a low of 48,000. we will need to purchase put options to protect it. But how I don't know.