Question #2: Option Valuation (Binomial Option Pricing) [20 Points] Suppose you have just purchased one share of Autodesk stock (ADSK) for $74. You have forecasted that in one year the stock price will either rise to $88.8 or fall to $59.20 Suppose further that you can either buy or sell a call option on ADSK stock with a strike price of $75. Assume that this is a European style contract that expires exactly in one year and that the risk-free interest rate is 4.2%. (a) Calculate the hedge ratio (H). [3 Points] (b) Based on your answer from Part (a), fill in the following table showing that you have created a riskless portfolio. [5 Points Stock Price $88.80 Stock Price $59.20 Value of Shares Value of Written Call Options Total Payoff (d) Calculate the price of the call option [10 Points]