Problem:
1-Calculate the lower bound price of a European put with an exercise price of $40, an underlying price of $36, and three months to expiration. The risk-free rate is 4 percent.
2-A 40 call has a price of $2.35 and a 40 put has a price of $5.25. The 90-day T-bill rate is 3.20 percent and both the call and put option contracts expire in 90 days. Calculate the market price of the stock that maintains put-call parity.