Assume that a stock trading for $32 today will be worth either $25 or $35 in two years. A risk-free asset offers an annualized 3% return (continuously compounded) over that time period. What is the hedge ratio (delta) of a two-year put option on this stock with a strike price of $28? O a. -0.6 O b. 0.7 ○ c. 0.5 d. 0.6 O e. -0.7

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