1. European put and call options both have an exercise price of $50 that expires in 120 days. The underlying asset is priced at $52 and makes no cash payments during the life of the option. The risk-free rate is 4.5% and the put is selling for $3.80. Use the put-call parity, to calculate the price of the call option.[4]

2.It is sometimes argued that speculation in futures markets is pure gambling.It is not in the public interest to allow speculators to trade on a futures exchange.Discuss this viewpoint in not more than 5 lines. [4]