We will derive a two-state call option value in this problem. Data: s9=$210;x=$220;1+r=110. The two possibilities for $T are $250 and $130. The portfolio consists of 1 share of stock and 4 calls short. Required: a. The range of S is $120 while that of C is $30 across the two states What is the hedge ratio of the call? (Round your answer to 2 decimal places.) b. Calculate the value of a call option on the stock with an exercise price of $220. (Do not use continuous compounding to calculate the present value of X in this example, because the interest rate is quoted as an effective per-period rate) (Do not round intermediate calculations. Round your answer to 2 decimal places.)