Question: You will derive a two-state call option value in this problem. Data: S0 = $100, X = $110; 1+r = 1.10. The two possibilities for

You will derive a two-state call option value in this problem. Data: S0 = $100, X = $110; 1+r = 1.10. The two possibilities for ST are $130 and $80. What is the hedge ratio of the call?

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