Consider the below information: Two period, two state world. Let the current stock price be 90 The risk-free rate be 8%. Each period the stock price can go either up by 10% or down by 8%. A call option expiring at the end of the second period has an exercise price of 85. Requirements: 1. Find the stock price sequence (Su, Sd, Su^, Sud, Sdu, and S^) 2. Determine the possible prices of the call at the end of the second period (Cu, Cd, Cu^2, Cud, Cdu, and C^2) 3. Determine the possible prices of the call at the end of the first period (C and Cd) 4. What is the current price of the call [C] 5. What is the initial hedge ratio [h] 6. Find the current value of the hedging portfolio (Vo), assuming you are hedging 1000 calls