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3. Reconsider the determination of the hedge ratio in the hwo-state model (Section 16 2). where we showed that one-third share of stock would hedge

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3. Reconsider the determination of the hedge ratio in the hwo-state model (Section 16 2). where we showed that one-third share of stock would hedge one option. What would be the hedge ratio for each of the following exercise prices. (a) $120, (b) $110, (c) $100, (d) \$90? What do you conclude about the hedge ratio as the option becomes progressively more in the money

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