Question: Question #2: Option Valuation (sinomial Option Pricing) [2v Points] Suppose y ou have just purchased one share of Xponential Fitness, Inc stock (XPOF) for $2237
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Question \#2: Option Valuation (sinomial Option Pricing) [2v Points] Suppose y ou have just purchased one share of Xponential Fitness, Inc stock (XPOF) for $2237 You have forecasted that in one year the stock price will either rise to $2635 or fall to $20W Suppose further that you can either buy or sell a call option on XPOF stock with a strike price of $2250 Issume that this is a European style contract that e pires e actly in one year and that the risk-free interest rate is 2% (a) Calculate the hedge ratio (H) [ 5 Points', (b) Sased on your answer from Part (a), fill in the following table showing that you have created a riskless portfolio [ Points
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