lilowr characterize the behavior of the hedge ratio in the limit as it gets farther in the money and as it gets farther out of the money, i.e.. do the following limits exist? 11111 H? text lim H? Sn i-oo Sn |~|J {Do not be concerned about providing a mathematical proofr I am more interested on your intu ition behind the price of the stock becoming really big or really small, and how this affects the ratio}. Exercise 3. Recall that the hedge ratio for an European call option is given by H Cu - Ca uSo - dSo Using the values from Exercise 1., explain why H 2 0 for the call, but H