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1.The current stock price is $100, the strike price of American call and put is $110, the present value of the strike price is $105,

1.The current stock price is $100, the strike price of American call and put is $110, the present value of the strike price is $105, the time to maturity of both options is 1, and the price of the American call is $4. Which of the following is a possible price of the American put and satisfies the put-call parity?

A. 4

B. 8

C. 12

D. 16

E. 20

2. In above problem, if the stock is a dividend paying stock, which of the above given choices for the price of the American put satisfies the American put-call parity?

A. 4, 8, 12

B. 12, 16, 20

C. 8, 16, 20

D. All of the above

E. None of the above

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