The text provided contains several errors, including typographical errors, OCR errors, and mathematical notation errors. Here is the corrected version:
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?
a. 0.5
b. 0.7
c. -0.7
d. -0.6
e. 0.6
Note: The corrected text includes the proper capitalization of "a" in "at