CarRUs stock is selling for $36 a share. A 3-month call on CarRUs stock with a strike price of $40 is priced at $2. Risk-free assets are currently returning 3.0% annual return, continuously compounded. What is the price of a 3-month put on CarRUs stock with a strike price of $40?

$4.70

$2.98

$5.70

$4.03

The green shoe option is used to:

provide additional reward to the investment bankers for a risky issue.

Both cover oversubscription and cover excess demand

cover excess demand.

provide additional reward to the issuing firm for a risky issue.