1. Bloomfield a nondividend paying stock is priced at $17.35 today. The current interest rate is 3.0% per

annum. A 3month put option with an exercise price of $20.00 is available. What is the lower bound of

the price of this put option ?

2. Troy's nondividend paying stock is at $47.00 and the price of a 6month European put options on the

stock with an exercise price of $45.00 is $2.00. The riskfree rate is 5.0% per annum. What is the price

of a European Call option with similar parameters (X = $45.00 and T = 6month)?

3. Birmingham's 6month put option with an exercise price of $55.00 is selling for $2.00. This nondividend

paying stock's price today is $51.30. The current interest rate is 3.50% per annum. If there is an

opportunity for an arbitrageur, how much money can be made immediately (now or T0)?