Aa Aa E. 5. Creating a riskless portfolio using call options Almost all option pricing models are based on the concept of a riskless hedge. Investors can create a riskless hedge by purchasing shares of stock and simultaneously selling a call option on the stock. Suppose Randall and Arts Inc. stock is currently selling for $40.00 per share. Options exist that permit the holder to buy one share at an exercise price of $35.00. These options will expire at the end of one year. When the options expire, Randall and Arts Inc.'s stock will either be selling for $50.00 or $25.00. What is the range of Randall and Arts Inc.'s ending stock prices? o $25.00 $45.00 $30.00 O $20.00 What is the range of Randall and Arts Inc.'s ending option values? $35.00 $10.00 $25.00 $15.00