Reconsider the determination of the hedge ratio in the two-state model where we showed that one-third share of stock would hedge one option. The possible end-of-year stock prices, us0=$150 (up state) and ds0=$123 (down state). a. What would be the call option hedge ratio for each of the following exercise prices: $150, $145, $140, $123, given the possible endof-year stock prices, us s0=$150 (up state) and ds0=$123 (down state)? (Round your answers to 3 decimal places.) b. What do you conclude about the hedge ratio as the option becomes progressively more in the money? Increases to a maximum of 1.0 Decreases to a minimum of 0