1. Grocery Express stock is selling for $66 a share. A three-month, $60 call on this stock is priced at $7.92. Risk-free assets are currently returning .2 percent per month. What is the price of a three-month put on Grocery Express stock with a strike price of $60?
A. $1.56
B. $2.33
C. $1.91
D. $2.78
2. Della's Pools has 36,000 shares of stock outstanding with a par value of $1 per share and a market price of $26 a share. The firm just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split?
A. 21,600 shares
B. 36,000 shares
C. 60,000 shares
D. 54,000 shares
3. According to put-call parity, the present value of the exercise price is equal to the:
A. Stock price plus the put premium minus the call premium.
B. Stock price plus the call premium minus the put premium.
C. Stock price minus the put premium minus the call premium.
D. Put premium plus the call premium minus the stock price.