Question: Data: So 130; X = 143; 1 + r= 1.1. The two possibilities for stare 160 and 109. a-1. The range of Sis 51 while

Data: So 130; X = 143; 1 + r= 1.1. The

Data: So 130; X = 143; 1 + r= 1.1. The two possibilities for stare 160 and 109. a-1. The range of Sis 51 while that of Cis 17 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) Hedge ratio 0.33 a-2. Calculate the value of a call option on the stock with an exercise price of 143. (Do not use continuous compounding to calculate the present value of X in this example because we are using a two-state model here; the assumed 10% interest rate is an effective rate per period.) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Call value

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