1. A put option and a call option with an exercise price of $65 and three months to expiration sell for $1.25 and $5.50, respectively.
If the risk-free rate is 4.3 percent per year, compounded continuously, what is the current stock price?
2. A put option and a call option with an exercise price of $50 expire in four months and sell for $1.02 and $5.30, respectively.
If the stock is currently priced at $53.20, what is the annual continuously compounded rate of interest?