Question: Data: S 0 = 120; X = 132; 1 + r = 1.1. The two possibilities for S T are 150 and 96. 1 .

Data: S₀ = 120; X = 132; 1 + r = 1.1. The two possibilities for S_T are 150 and 96.

1.	The range of S is 54, while that of C is 18 across the two states. What is the hedge ratio of the call?(Round your answer to 2 decimal places.)

Hedge ratio is

Calculate the value of a call option on the stock with an exercise price of $132. (Do not use continuous compounding to calculate the present value of X in this example because we are using a two-state model here, not a continuous-time Black-Scholes model.) (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Call value is $

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