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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

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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, uso $150 (up state) and dSo $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 end- of-year stock prices, uSo $150 (up state) and dso $123 (down state)? (Round your answers to 3 decimal places.) ExerciseHedge Ratio Price 150 145 140 123

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