Question: I need help on this two question 1. A stock is selling for $100.00, and is expected to pay an annual dividend of $2. An

I need help on this two question

1.

A stock is selling for $100.00, and is expected to pay an annual dividend of $2. An at-the-money European-style put option on the stock with a one-year maturity sells for $7.00. Determine the price of a one-year at-the-money call option on the same stock, if the annual interest rate is 5%.

2.

a). When the yield curve is upward sloping, why would the final coupon on a zero-coupon stripped U.S. Treasury yield more than a non-stripped Treasury bond with the same maturity?

b).In terms of the liquidity preference and expectations theories of the term structure of interest rates, explain the relationship between forward rates and expected spot (short) rates

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