A put and a call on the same underlying security have the same maturity and

exercise price. If they also sell for the same price, prove which one is in the money.

In December 2014, a 9-month call on a stock, with an exercise price of $475, sold for $46.80. The stock price was $475. The risk-free interest rate was 4%. Assume that the stock options are European options. (Note: This stock does not pay a dividend.)

How much would you be willing to pay for a put on this stock with the same maturity and exercise price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price of a put $

A European call and put option have the same maturity and both are at the money. The stock doesnt pay a dividend. Which option should sell for the higher price? Explain

You have a portfolio containing one call option with exercise price $70, one call option with exercise price $120, one put option with exercise price $40 and one put option with exercise price $200. What is the payout (payoff) of the portfolio if the underlying asset is selling for $98 at maturity?

(Hint: You do not need to draw the payout diagram).