1. You are given the following information: - The current price to buy one share of XYZ stock is 200. - The stock does not pay dividends. - The risk-free interest rate, compounded continuously, is 6%. - A European call option on one share of XYZ stock with a strike price of K that expires in one half year costs 4.81. - A European put option on one share of XYZ stock with a strike price of K that expires in one half year costs 23.16. Using put-call parity, determine the strike price, K. (a) K=175 (b) K=200 (c) K=225 (d) K=250 (e) K=275