You want to buy a stock that is currently selling for $50. You forecast that in one year, the stock's price will be either $106 or $12, with equal probabilities. There is a one-year call option on the stock available with an exercise price of $80. You are able to borrow at a rate of 6.50%. You would like to hedge your stock position using the call option. a. What will be the call's value if the stock price is $106 in one year? What will be the call's value if the stock price is $12 in one year? Round your answers to the nearest dollar.) Call value at $106 Call value at $12 b. What is the hedge ratio you should use? (Round your answer to 4 decimal places.) Hedge ratio c. Assume that you can purchase fractional shares of stock. How many shares of stock would you buy? (Round your answer to 4 decimal places.) Shares You want to buy a stock that is currently selling for $50. You forecast that in one year, the stock's price will be either $106 or $12, with equal probabilities. There is a one-year call option on the stock available with an exercise price of $80. You are able to borrow at a rate of 6.50%. You would like to hedge your stock position using the call option. a. What will be the call's value if the stock price is $106 in one year? What will be the call's value if the stock price is $12 in one year? Round your answers to the nearest dollar.) Call value at $106 Call value at $12 b. What is the hedge ratio you should use? (Round your answer to 4 decimal places.) Hedge ratio c. Assume that you can purchase fractional shares of stock. How many shares of stock would you buy? (Round your answer to 4 decimal places.) Shares