1. Underlying stock price: 30.86 Call Put Dove(DUV) Expiration Strike Last Last

Question

1.
Underlying stock price: 30.86 Call Put Dove(DUV) Expiration Strike Last Last Aug 25 6.15 .05 Nov 25 6.60 .10 Aug 35 .10 4.60 Nov 35 .70 5.10 What is the cost of eight August $35 put option contracts on Dove stock given the following price quotes?

2.
Cell Tower stock has a current market price of $43 a share. The one-year call on Cell Tower stock with a strike price of $44.5 is priced at $3 while the one-year put with a strike price of $44.5 is priced at $1. What is the risk-free rate of return?

Please help with these two questions, can't find out how to solve them

Explanation / Answer

2)

44.5/(1 + r) = -$3 + $43 + $1; r = 8.53percent

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