Reconsider the determination of the hedge ratio in the two-state model (Section 16.2), where we showed that one-third share of stock would hedge one option. a. What would be the hedge ratio for each of the following exercise prices: $210, $180, $150, $120? (Leave no cells blank - be certain to enter 0 wherever required. Round your answers to 2 decimal places.) X Hedge Ratio $210 $180 $150 $120 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