Alexander calculates that shares of Huron Investments, currently trading at $36, will either increase to $72 or decrease to $18 in one year with a 50/50 probability. The simple interest rate is 8.125%.

Alexander is considering a one year $63.00 call option and 100 shares of leveraged stock.

Alexander's initial investment on 100 shares of leveraged stock is $

The hedge ratio is 1/

and the price of the call option should be