We will derive a two-state call option value in this problem. Data: 5 $220, x= $230;1 * 110. The two possibilities for sy are $250 and $150. The portfolio consists of 1 share of stock and 5 calls short Required: a. The range of Sis $100 while that of Cis $20 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) Hedge ratio a b. Calculate the value of a call option on the stock with an exercise price of $230. (Do not use continuous compounding to calculate the present value of X in this example, because the interest rate is quoted as an effective per-period rate) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Call value