17. You are presented with the following information: A call option with a current value of $7.10. A put option with a c

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17. You are presented with the following information:
A call option with a current value of $7.10. A put option with a
current value of $7.00. Both options written on the same stock,
with 1 year until expiration, and a strike price of $54.00. The
prevailing risk-free rate is 7.00%. What must be the current price
of the stock on which these two options are written? *** In your
calculations, use simple discounting instead of continuous
discounting. Also, do not enter the dollar sign and use two
decimals (round off to 2 decimals).
Your Answer:
________
18. Suppose you believe that Du Pont's stock price is going
to decline from its current level of $ 84.01 sometime during the
next 5 months. For $ 301.79 you could buy a 5-month put option
giving you the right to sell 100 shares at a price of $70 per
share. If you bought a 100-share contract for $ 301.79 and Du
Pont's stock price actually changed to $ 61.95 , your net profit
(or loss) after exercising the option would be ______? Show your
answer to the nearest .01. Do not use $ or , signs in your answer.
Use a - sign if you lose money on the contract.
Your Answer:
_________