A one-year call option has a strike price of \$60, expires in 6 months, and has a price of $2.5. If the risk-free rate is 7% p.a compounded, and the current stock price is $55. Please explain in detail what should the corresponding put be worth. (1) Please explain in detail what should be the corresponding put option worth. (2) Please explain the direction of the effect of a change in each of the following factors on the price that you would be willing to pay for a put option on the same stock (treat each factor separately). The factors are: (i) A rise in the current price of stock; (ii) A rise in the strike price of the option; (iii) A rise in the time to maturity of the option; (iv) A rise in the risk-free interest rate; (v) A rise in the volatility of the stock price B2 Assessing criteria (1) Numeric working process - 2 marks Correct answer - 1 marks Clear explanations which demonstrates a good understanding on the answers - 2 marks (2) Each factor - 2 marks