1) Simone calculates that shares of Bad Wolf Enterprises, currently trading at $24, will either increase to $48 or decrease to $12 in one year with a 50/50 probability. The simple interest rate is 4.000%. Simone is considering a one year $42.00 call option and 100 shares of leveraged stock. Simone's initial investment on 100 shares of leveraged stock is $ The hedge ratio is 1/ and the price of the call option should be