1. Given the following data, what is the put premium according to the put-call parity? S =$80 X =$70 RF =.05 T =6 months Call premium = 12.00.
a. $.3857 b. $.4899 c. $.3201 d. $.2717 e. $.4323.
2. Is there any way to determine BVPS (book value per share) from either ROI or the gross of EPS?
3. The premium for a call option is $4, in which the time value component is $2. The current underlying stock price is $63. What is the exercise price of this option?
a. $58
b. $59
c. $61
d. $60
e. $62