QUESTION 1 Which of the following regarding hedge ratio is NOT correct? The hedge ratio for put option is always non positive and the hedge ratio for call option is always non-negative. The hedge ratio for call option is always between 0 and 1. The hedge ratio for call option can be higher than 1. It happens when both the up state and the down state results in a stock that's higher than the strike price. For a call option, the hedge is zero if in both the up and down states, the stock price is lower than the strike price