Use Two-State Binomial Option (European) Pricing Model. Suppose you bought a stock today for $20.00. The stock price can either go up to $24.00 or down to $17.00 with equal probability in 0.25 years (or 90 days). Suppose the annual risk-free rate is 4.00% and the option exercize price is 21.00.

How much is the Hedge Ratio? Enter your answer in the following format: 0.1234 Hint: Answer is between 0.3857 and 0.4757