Question: Data: So = 140; X = 154; 1 + r= 1.1. The two possibilities for Stare 170 and 122. a-1. The range of Sis 48

Data: So = 140; X = 154; 1 + r= 1.1.

Data: So = 140; X = 154; 1 + r= 1.1. The two possibilities for Stare 170 and 122. a-1. The range of Sis 48 while that of Cis 16 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) Hedge ratio a-2. Calculate the value of a call option on the stock with an exercise price of 154. (Do not use continuous compounding to calculate the present value of Xin this example because we are using a two-state model here with discrete periods, not a continuous-time Black-Scholes model.) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Call value Data: So = 140; X = 154; 1 + r= 1.1. The two possibilities for Stare 170 and 122. a-1. The range of Sis 48 while that of Cis 16 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) Hedge ratio a-2. Calculate the value of a call option on the stock with an exercise price of 154. (Do not use continuous compounding to calculate the present value of Xin this example because we are using a two-state model here with discrete periods, not a continuous-time Black-Scholes model.) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Call value

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