chance it falls? Exercise 2. (No picking specific numbers) Recall that the hedge ratio for a European call option is given H = Go - Alone Characterize the behavior of the hedge ratio in the limit as it gets farther in the money and as it gets farther out of the money, i.e., lim H =? lim H =? So-00 (Hint: Note that Cu and Cd are really functions of the underlying stock price So.) chance it falls? Exercise 2. (No picking specific numbers) Recall that the hedge ratio for a European call option is given H = Go - Alone Characterize the behavior of the hedge ratio in the limit as it gets farther in the money and as it gets farther out of the money, i.e., lim H =? lim H =? So-00 (Hint: Note that Cu and Cd are really functions of the underlying stock price So.)