Spot rate for this stock if spot-futures parity exists

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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

Reference no: EM132050197

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