Question: please show steps to final answer. 2. Ben sells a stock short for $100 and purchases a 1-year European $100-strike call option at the same

please show steps to final answer.

2. Ben sells a stock short for $100 and purchases a 1-year European $100-strike call option at the same time. Ben pays a premium of $8 for the call option. On the same date, Kate purchases a 1 -year European $100-strike put option for $5. What is the risk-free rate of return compounded continuously rounded to the nearest percent? Assume Ben earns the risk-free rate on the proceeds of the short sale

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