a We will derive a two-state call option value in this problem. Data: Se = $200 X = $210; 1 + y = 110. The two possibilities for sy are $230 and $180. The portfolio consists of 2 shares of stock and 5 calls short Required: a. The range of Sis $50 while that of Cis $20 across the two states. What is the hedge ratio of the call (Round your answer to 2 decimal places.) Hedge ratio J b. Calculate the value of a call option on the stock with an exercise price of $210. (Do not use continuous compounding to calculate the present value of Xin this example, because the interest rate is quoted as an effective per-period rate) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Call value