Call and put with identical contract terms on the stock

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1. Consider a stock that pays no dividends whose value equals the strike price of a call and put with identical contract terms on the stock. Interest rates are positive. Then, which of the following is true? (Hint: Use put-call parity for European Options and the fact B < 1)

a) the call price must equal the put price

b) the call price will be greater than the put price

c) the call price will be less than the put price

d) the call price will be less than or equal to the put price

e) None of these answers are correct.

2. Roxy Radio Corp has a total current liabilities of $22,000 and an inventory of $7,000 and current assest of $26,000. If the current ratio is 1.2, then what is Radio's quick ratio?

Reference no: EM132042290

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