We will derlve a two-state call option value in this problem. Data: s0=$160;X=$170;1+r=1.10. The two posslbilitles for sT are $190 and $110. The portfollo consists of 1 share of stock and 4 calls short. Required: a. The range of S is $80 while that of C is $20 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 $170. (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-perlod rate.) (Do not round Intermedlate calculatlons. Round your answer to 2 decimal places.)