Required: a. Consider a call option if in a two-state model, a stock can take a price of $144 or $108, what would be the hedge ratio for each of the following exercise prices: $144, $140, $130, $108? (Leave no cells blank - be certain to enter "O" wherever required. Round your answers to 2 decimal places.) Answer is not complete. Hedge Ratio $ 144 $ 140 0.09 0.33 X 130 $ 108 0.84 X 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