2. (10 pts.) The share value of Drummond, Griffin and McNabb, a New Orleans publishing house, is currently trading at $100 but is expected, 90 days from today, to rise to $140 or to decline to $60, depending on critical reviews of its new biography of Ezra Pound. Assuming the risk-free interest rate over the coming 90-day period is 1/4 of 1%, can you value a European call option written on a share of DGM stock if the option carries an exercise price of $75? What is the hedge ratio