Hofstader Enterprises Corp. stock's current price is $108, and you believe it has a 50% chance of increasing to $122 and a 50% chance of decreasing to $94. Hofstader Enterprises currently pays no dividends. The risk-free rate of interest is 11%. What is the hedge ratio for the call option on Hofstader Enterprises with an exercise price of $108 and one year to expiration? (Round your answer to 2 decimal places.) Hedge ratio 0.50 Calculate the value of a call option on Hofstader Enterprises with an exercise price of $108 and one year to expiration using the two state stock price model. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Call option's value 5 6.31