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The current price of Google stock is 100, and its price could be either 120 or 80 after 1 year. The annual risk-free rate is

  1. The current price of Google stock is 100, and its price could be either 120 or 80 after 1 year. The annual risk-free rate is 10%. The one-year call option on Google stock has a strike price of $100.
    1. Using the hedging approach, what is the hedge ratio and what is the call options price?

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