Looking to figure out how to figure out - what position in shares would perfectly hedge a long position in the call option. Is the position in shares long or short?

A stock price is today currently worth $50. It is known that at the end of six months it will be either $60 or $42. The risk-free rate of interest with continuous compounding is 12% per annum. The stock does not pay dividends. Assume that six months is 0.5 years.

(a) Calculate the value (i.e., the price in dollars today, correct to four decimal places) of a six-month European call option on the stock with an exercise price of $48. You must do this by no-arbitrage arguments (in other words, not just by using a formula). As part of your answer, I want you to tell me what position in shares would perfectly hedge a long position in the call option. Is the position in shares long or short?

(b) Verify that no-arbitrage arguments and risk-neutral valuation arguments give the same answer (i.e., the give same price of the European call option), again checking everything to four decimal places.