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We will derlve a two-state call option value In this problem. Data: s0=$210;X=$220;1+r=1.10. The two possibilitles for sT are $250 and $130. The portfollo consists of 1 share of stock and 4 calls short. Required: a. The range of S is $120 while that of C is $30 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) b. Calculate the value of a call option on the stock with an exercise price of $220. (Do not use continuous compounding to calculate the present value of X In this example, because the Interest rate is quoted as an effective per-perlod rate.) (Do not round Intermedlate calculations. Round your answer to 2 decimal places.) We will derlve a two-state call option value In this problem. Data: s0=$210;X=$220;1+r=1.10. The two possibilitles for sT are $250 and $130. The portfollo consists of 1 share of stock and 4 calls short. Required: a. The range of S is $120 while that of C is $30 across the two states. What is the hedge ratio of the call? (Round your answer to 2 decimal places.) b. Calculate the value of a call option on the stock with an exercise price of $220. (Do not use continuous compounding to calculate the present value of X In this example, because the Interest rate is quoted as an effective per-perlod rate.) (Do not round Intermedlate calculations. Round your answer to 2 decimal places.)