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Coca-Cola currently has a stock price of $53.75. It also has eight options available with the following Expiration Date, Strike Price (Exercise Price), and Option

Coca-Cola currently has a stock price of $53.75. It also has eight options available with the following Expiration Date, Strike Price (Exercise Price), and Option Price. For Example, you can buy a Feb 55 Call for $3.6 (or you could sell it for $3.6). The risk free rate between now and Feb is 2% while the risk free rate between now and May is 3%.

Expiration Month

Strike Price

Discounted Value

Call Price

Put Price

Feb

50

49.02

4.2

Feb

55

3.3

May

50

0.75

May

55

53.40

3.6

Using Put-Call Parity, What is the value of the May 55 Put option?

A) $1.15

B) $2.85

C) $3.25

D) $4.85

Please show work......Does the Risk free rate have anything to do with this question???

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