Alexander calculates that shares of Zippen Industries , currently trading at $28, will either increase to $56 or decrease to $14 in one year with a 50/50 probability. The simple interest rate is 2.000%. Alexander is considering a one year $42.00 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___________