5. A PUT is priced at $3.19 with an exercise of $52.50 and 69 days to expiration. What is the price of a similar CALL option with the same exercise price and time to expiration assuming a risk-free rate of 3.00% when the stock is currently priced at $50.93? Assume put/call parity, continuous compounding, and 365 days per year.

Group of answer choices

1.99

2.18

2.13

2.06

1.92

6. A STOCK is priced at $55.68 with CALLS priced at $2.47 having 13 weeks to expiration. What is the EXERCISE PRICE (X) of the calls if similar PUT options (same time to expiration) are priced at $3.93. The risk-free rate is currently 6.00%. Assume put/call parity, continuous compounding, and 52 weeks per year.

Group of answer choices

56.00

60.00

59.00

57.00

58.00

7. You purchase a call option for $3.96 with 12 months to expiration on a stock you expect to increase in value.0.00%The strike price of the option is $25.00 The stock is currently priced at $25.00. Its standard deviation is 33.00% It pays a 0.00% dividend. The risk-free rate is 6.00% If the stock is exactly where it is today, i.e. S0 = ST, 6 months from now, what is the change in option value as a percent (or decimal)? Use these values as a part of your calc's: N(d1) 0.59686 N(d2) 0.50474

Group of answer choices

-35.75%

-32.32%

-30.54%

-34.11%

-28.64%

8. You purchase a call option for $6.39 with 18 months to expiration on a stock you expect to increase 30.00%. The strike price of the option is $37.50 The stock is currently priced at $37.50. Its standard deviation is 31.00% It pays a 0.00% dividend. The risk-free rate is 3.00% If the stock rises exactly as you expect, but it takes 9 months , what is the gain on your options trade as a percent (or decimal)? Use these values as a part of your calc's: N(d1) 0.88402 N(d2) 0.823

Group of answer choices

102.19%

92.28%

85.94%

97.85%

84.20%