10. Consider the following information. VOL, INC stock is selling for $37 per share. A European call option on VOL with exercise price $35 is selling for $5. The option has 180 days to expiration and the risk free rate is 3%. Calculate the price of a put on VOL with exercise price $35 and expiring in 180 days. Use daily compounding.

a. 1.87

b. 2.05

c. 2.26

d. 2.49

e. 2.73

11. Which one of the following statements about the options in the previous problem is FALSE?

a. The call option is in the money

b. The call's exercise value is $2

c. The put's exercise value is $0

d. Buying the stock and the put while selling the call forms a risk free investment.

e. The call plus the stock form a risk free investment.

I know the answers are correct in bold, but I am not sure how to get to these answers