A.(Call and put valuation) Consider a European put and a European call, both traded on a stock whose current price is $80 per share. The stock's return has volatility o 40%, the time to maturity of both options is 9 months, and the interest rate r = 6%. For what exercise price X are the Black-Scholes put and call prices equal? = I

B. (Pricing a call) A 1-month European call option is currently selling for $3.00. The exercise price of the option is $40, and the current stock price is S = $43. The monthly interest rate is 0.5% and the monthly volatility of the stock return is at 7%. According to the Black-Scholes formula, is the market price correct?