Question: Problem 3 (5 pts.) A certain Call option and Put option for Takoma Supply, Inc. stock both have an exercise (strike) price of $25.00. The

 Problem 3 (5 pts.) A certain Call option and Put option

Problem 3 (5 pts.) A certain Call option and Put option for Takoma Supply, Inc. stock both have an exercise (strike) price of $25.00. The Call premium (price) is $2.71 and the Put premium (price) is $3.82. Assume the stock pays no dividends, the risk-free rate is 2.5%, and both options expire in 62 days. Part A Using the put/call parity model, calculate the current stock price (S). Show all work, carrying all calculations out to four (4) decimal places. Highlight your answer in bold. [4 pts.] Part B Based upon your answer for the stock price, which option is in-the-money? Briefly explain your answer. [1 pt.]

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