Which of the following regarding hedge ratio is NOT correct? The hedge ratio for put option is always non-positive and the hedge ratio for call option is always non-negative. The hedge ratio for call option is always between 0 and 1 The hedge ratio for call option can be higher than 1. It happens when both the up state and the down state results in a stock that's higher than the strike price O For a call option, the hedge is zero if in both the up and down states, the stock price is lower than the strike price QUESTION 2 You observe a $45 price for a non- dividend paying stock. We consider a PUT option in a one-period binomial tree model. The periodically compounded risk-free interest rate is 4%, the exercise price is also $45, u = 1.21, and d 0.77. Assume the call option is European-style. The hedge ratio at the beginning of the binomial tree is close to O 0.5 -0.5 O 10 0.10