Grocery Express stock is selling for $22 a share. A 3-month, $20 call on this stock is priced at $2.85

Grocery Express stock is selling for $22 a share. A 3-month, $20 call on this stock is priced at $2.85. Risk-free assets are currently returning 0.2 percent per month. What is the price of a 3-month put on Grocery Express stock with a strike price of $20?    A.  $0.37 B.  $0.73 C.  $0.87 D.  $1.10 E.  $1.18 P = ($20/1.0023) + $2.85 - $22 = $0.73

53.

J&N, Inc. stock has a current market price of $46 a share. The one-year call on this stock with a strike price of $55 is priced at $0.05 while the one-year put with a strike price of $55 is priced at $8.24. What is the risk-free rate of return?    A.  1.49 percent B.  1.82 percent C.  3.10 percent D.  3.64 percent E.  4.21 percent $55/(1 + r) = -$0.05 + $46 + $8.24; r = 1.49 percent

54.	You invest $4,500 today at 6.5 percent, compounded continuously. How much will this investment be worth 8 years from now?    A.  $6,728 B.  $7,569 C.  $8,311 D.  $8,422 E.  $8,791 FV = $4,500 × 2.718280.065 × 8 = $7,569

55.	Todd invested $8,500 in an account today at 7.5 percent compounded continuously. How much will he have in his account if he leaves his money invested for 5 years?    A.  $12,203 B.  $12,245 C.  $12,287 D.  $12,241 E.  $12,367 FV = $8,500 × 2.718280.075 × 5 = $12,367