1. Assess the sensitivity of patient services department profitability to: -The allocation method. -The relative sizes of the overhead cost pools. -The allocation rates.
2. A call option with an exercise price of $35 and three months to expiration has a price of $4.15. The stock is currently priced at $34.80, and the risk-free rate is 3 percent per year, compounded continuously.
What is the price of a put option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)