The share value of Groucho, Gummo, and Zeppo (GGZ), a Bronx publishing house, is currently trading at $80 but is expected, 90 days from today, to rise to $100 or to decline to $50, depending on critical reviews of its new biography of Teddy Roosevelt. Assuming the riskfree interest rate over the coming 90-day period is of 1%, can you value a European call option written on a share of GGZ stock if the option carries an exercise price of $90? What is the proper hedge ratio? What is the split between the options time and intrinsic values?