Adam Smith is a portfolio manager with Point72 Investments, a U.S.-based asset management firm. He is considering using options to enhance portfolio returns and control risk. He asks his junior analyst, John Miller, to help him.

John collected the current market prices and data of selected instruments related to Lotus stock in Table 2.

European call option on Lotus equity	$6
European put option on Lotus equity	$3.0
Lotus equity price	60
Time to expiration of options in months	3
Exercise price of options	60
Risk-free rate	8%
Dividend to be paid in 3 months	$0.00

		3.2
		2.3
		1.2
		0.5
		1.81