Question: You are using the binomial option pricing model to value the following call option. S O = $100; X = $120; the two possibilities for

You are using the binomial option pricing model to value the following call option. S_O= $100; X = $120; the two possibilities for S_T are $150 and $80. The range of call payoff across the two states is _____; the hedge ratio is _______.

Group of answer choices

$0 and $40; -4/7

$0 and $30; -3/7

$0 and $40; +4/7

$0 and $30; +3/7

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