1. The 3-month futures price on a non-dividend-paying stock is $31.80. The risk-free rate is 2.5 percent and the market rate is 9.5 percent. What is the spot rate for this stock if spot-futures parity exists?
A) $31.39
B) $31.43
C) $31.51
D) $31.60
E) $31.78
2. Jasmine purchased one call option with a strike price of $35 when the call premium was $1.10. What is the break-even stock price?
A) $0.00
B) $33.90
C) $34.45
D) $35.00
E) $36.10