1. Assume a volatility of 25%. What is going to be the hedging ratio for a replicating portfolio for an option that pays $1$ in thw case of good state of the world and $0$ in the bas 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!

   		0.07
   		0.14
   		0.25
   		NONE OF THE ABOVE