2. A call option on Coals Mine is trading at $2.00. The call option has an exercise price of $6.50 and it expired in six months. Coals Mine shares are currently trading at $7.40, and the risk-free rate of interest is 10% per annum. a) If put-call parity holds, what is the expected price of a put option on Coals Mine shares which has an exercise price of $6.50 and a term to expiration of six months? b) What is the call option payoff at maturity if the share price is i) $8.50 ii) $4.50