PLEASE PROVIDE STEPS / EXPLAIN HOW TO SOLVE THIS QUESTION

2 You have just a sold a TWO-PERIOD call option on 100 shares of a $20 stock. In each of the next 2 periods the stock can go up 50% or fall by 50% The risk-free rate is 12.50 percent per period. The strike price is $18.00 per share. Delta hedge your short position in the option by adjusting the amount of shares that you own to "cover" the call. Note that your answer should show what you buy or sell (how many shares, strike prices et cetera) each nerind 2 You have just a sold a TWO-PERIOD call option on 100 shares of a $20 stock. In each of the next 2 periods the stock can go up 50% or fall by 50% The risk-free rate is 12.50 percent per period. The strike price is $18.00 per share. Delta hedge your short position in the option by adjusting the amount of shares that you own to "cover" the call. Note that your answer should show what you buy or sell (how many shares, strike prices et cetera) each nerind