1. Assume a volatility of 25%. What is going to be the hedging ratio for a replicating portfolio for an option that pays $0$ in the case of good state of the world and $2$ in the BAD state of the world. Assume the option expires in half a year and the current stock price is 20$ ( Hint: form the replicating portfolio and calc the alpha for this payoff ) PLEASE ANSWER ASAP WILL GIVE POSITIVE RATING

   p.s. Don't chase bps !!

   		-0.28
   		-0.14
   		-0.89
   		NONE OF THE ABOVE