a. If, in a two-state model, a stock can take a price of 140 or 105, what would be the hedge ratio for each of the following prices: $140, $135, $125, $105? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.) X Hedge Ratio $ 140 $ 135 $ 125 $ 105 b. What do you conclude about the hedge ratio as the option becomes progressively more in the money? Increases to a maximum of 1.0 Decreases to a minimum of 0