1. A reversal (synthetic short T-) was created by selling a nondividend-paying stock for $99, buying a 5-month European call option with a strike price of $96 on a share of stock for $6.57, and selling a 5-month European put option with a strike price of $96 for SP. The annual effective rate of interest is 3%. Find P. Hint: 2.395 2. Suppose the exchange rate is $1.25/, the euro-denominated continuously compounded in- terest rate is 4%, the dollar-denominated continuously compounded interest rate is 6%, and the price of 2-year $1.20-strike European cal on the euro is $0.19. What is the price of a 2-year $1.20-strike European put on te Euo? Hint: $0.10