Consider a call option on Stock ABC. The call expires in $8$ months and has a strike price E$=$$$24.$

The current price of stock ABC is $$21.$ In $8$ months, the stock price can either go up to $25($up state$)$ or go down to $$20($down state$).$ The call premium in the $2$ states is: $$1$ in the up state and $$0$ in the down state. Assume that the risk$-$free rate is $12\%$ per annum. Calculate the hedge ratio. $($Please report your answer using $2$ decimals$)-$Answer: $0\mathrm{.}2$

Continuation of Question $1.$ Calculate the value of the call option in period $0.$

$($Hints: Use continuous discounting when calculating present value. Use the method from the beginning of the class on $4/18,$ not the method based on state prices. Also, please report your answer using $4$ decimals$)-$Needs Answering