1. How could you earn money in the put-call parity example in Section 26.2B if the 1-year put option traded in the market for $25 per share, the stock price were $80, the equivalent 1-year call cost $30, and the interest rate were 10% per year?
2. A 1-year put option with a strike price of $80 costs $25. A share costs $70. The interest rate is 8% per year. What should a 1-year call option with a strike price of $80 trade for?
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