Question: 3- For a stock, you are given: (i) The current stock price is $50. (ii) 8 = 0.08 (iii) The continuously compounded risk-free interest rate

3- For a stock, you are given: (i) The current stock

3- For a stock, you are given: (i) The current stock price is $50. (ii) 8 = 0.08 (iii) The continuously compounded risk-free interest rate is r=0.04. (iv) The prices for one-year European calls (C) under various strike prices (K) are shown below: $40 $50 $60 $70 $ 9.12 S 4.91 $ 0.71 $ 0.00 (a) for each strike price listed above calculate the Put option? (b) Determine if it optimal to exercise any of these put options? draw the Put Option

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