Consider the following data for a stock and a call option on that stock: S₀ = $50,S₁ = $75 or $100,E = $50,and r = 1.10.Derive the hedge ratio ( )and the price of the call option.

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The Answer of Consider the following data for a stock and a call option on that stock: S₀ = $50,S₁ = $75 or $100,E = $50,and r = 1.10.Derive the hedge ratio ( )and the price of the call option.

Consider the Following Data for a Stock and a Call