a. Consider a call option. If, in a two-state model, a stock can take a price of $196 or $147, what would be the hedge ratio for each of the following exercise prices: $196, S195, $185, S147? (Leave no cells blank - be certain to enter "O" wherever required. Round your answers to 2 decimal places.) Hedge Ratio $196 $195 $185 $147 b. What do you conclude about the hedge ratio as the option becomes progressively more in the money? Increases to a maximum of 1.0 Decreases to a minimum of