Exercise 2. (No picking specific numbers) Recall that the hedge ratio for a European call option is given by Cu - Cd H uso - ds. What happens to the hedge ratio in the limit as it gets farther in the money and as it gets farther out of the money, i.e., solve for lim H=? lim H=? (1) So too So +0 (Hint: Note that Cu and Cd are really functions of the underlying stock price So.)