4. i. Using the prices below check to see if put-call parity holds for the October 2002 Microsoft options with K=45. The prices below are closing prices on 9/13/02. Equity options expire on the third Friday of the expiration month. The 3 month T-Bill rate on 9/13/02 was 1.645%. If it doesn't hold, give some reasons why. Microsn MSFT Expiration Strike Sep Oct Jan Oct Jan Apr Sep Oct Jan Undert in Last 0.05 0.85 2.55 3.9 185 4.1 5.7 2.5 4.1 6.4 stock rice* : 47.91 put Open Inter 40 40 40 40 45 45 45 45 50 50 50 Last 7.4 8.3 10 E 118 3M 5 88 1.85 4.3 Call Volume 26 70 10 20 3386 392 15 12 2719 321 Open Inter est 750 1860 321B 24 13422 5825 5956 142 43800 23976 36773 Volume 49 2412 111 250 7491 769 1507 6 4121 2095 779 est 6137 26305 2029B 758 28435 22082 30475 1261 18871 18245 53261 ii. Now using the more detailed prices below, check to see if there is a violation of put-call parity. Calls 02 Oct 500 Last Bid sale Ask 51 Vol Open In 11 566 Puts 500 Last sale Bid Ask 14 Vol Open I 2 221