Question: 6. Use binomial option pricing model for this question. Suppose the current spot rate for USD/CHF is 0.7000. You need to find the one-year call

6. Use binomial option pricing model for this question. Suppose the

6. Use binomial option pricing model for this question. Suppose the current spot rate for USD/CHF is 0.7000. You need to find the one-year call option price of USD/CHF with the exercise price of 0.6800 USD/CHF. Assume that our future states will be either 0.7739 USD/CHF or 0.6332 USD/CHF, 1) what are the payoffs of the call option (for both states)? 2) what is the hedge ratio of the call option

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