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 $135 (up state) and dso $92 (down state a. What would be the call option hedge ratio for each of the following exercise prices: $135, $122, $112, $92, given the possible end-of year stock prices, uSo $135 (up state) and dso $92 (down state)? (Round your answers to 3 decimal places.) Exercise Hedge Ratio Price 135 122 112 92 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 O