b. If the current price of an ATM put option is $3.81 does the put-call parity relationship hold in this instance?

3. You are interested in options where the underlying asset is the stock of Cold Mountain Corp. The current stock price is $40 and Cold Mountain pays no dividends. You are attempting to value a call option with an exercise price of $40 and you believe that it has a 50% chance of increasing to $50 and a 50% chance of decreasing to $30. The risk-free rate of return is 5%. 3. You are interested in options where the underlying asset is the stock of Cold Mountain Corp. The current stock price is $40 and Cold Mountain pays no dividends. You are attempting to value a call option with an exercise price of $40 and you believe that it has a 50% chance of increasing to $50 and a 50% chance of decreasing to $30. The risk-free rate of return is 5%