5. A European call option on Home Depot stock has a strike price of $160 and expires in 0.9 years. Home Depot stock has a current market price of $165.99 and the risk-free rate is 4%.

What must be the minimum price of the option?

6. A European put option on AIG stock has a strike price of $40 and expires in 0.9 years. AIG stock has a current market price of $35.76 and the risk-free rate is 2%.

What must be the minimum price of the option?

7. A European call option on IBM stock costs $110. It expires in 0.5 years and has a strike price of $800. IBM's stock price is $880. The risk-free rate is 0.7% (continuously compounded).

What should be the price of the put option with the same strike price and expiration date?

8. The current price of a stock is $829. The stock is expected to pay dividends of $1.71 in 1 months and $1.71 in 4 months.

A European put option on the stock costs $31. It has a strike price of $800 and expires in 0.5 years. The risk-free rate is 8% (continuously compounded).

What is the present value of the dividends?

What should be the price of the call option with the same strike price and expiration date?

9. The current price of a stock is $528. The stock is expected to pay dividends of $1.39 in 2 months and $1.39 in 5 months.

A European call option on the stock costs $13. It has a strike price of $540 and expires in 0.5 years. The risk-free rate is 4% (continuously compounded).

What is the present value of the dividends?

What should be the price of the put option with the same strike price and expiration date?