3. Using the prices below (which are closing prices on 9/13/02 were taken from th WSJ on 9/16/02) check that if put-call parity holds for the December 02 gold options on futures with a strike equal to $320. The options expire on 12/21/02 (expiration dates for the options are available from the New York Mercantile Exchange web site ( On 9/13/02, the gold futures price at the close was 318.10 and the 3 month T-Bill rate was 1.645%. GOLD (CMX) 100 troy ounces; $ per troy ounce Strike Calls Price Oct Nov Dec 310 7 11.1 13.8 315 2 8 11.3 320 0 5.4 8 325 0 4.2 6.7 330 0 2.9 5.6 335 0 2 4.7 Estimated Volume Total: 13,000 Volume for Thursday Calls Open Interest for Calls Oct 0 0 3 8 13 18 Puts Nov 3 4.9 7.6 11.1 14.8 18.8 Dec 5.7 8.2 10.7 13.5 17.4 21.5 7,275 Puts 159,767 Puts 3,883 71,205