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, US $145 (up state) and dSo - $95 (down state). a. What would be the call option hedge ratio for each of the following exercise prices $145. $134, $115. $95, given the possible end of year stock prices, u5o = $145 (up state) and dSo = $95 (down state)? (Round your answers to 3 decimal places.) Hedge Ratio Exercise Price 145 134 115 95 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