Continuation of problem 3. Using the put-call parity relationship, calculate the value of a similar (i.e., with similar characteristics, same underlying asset, same expiration date, same strike price) put option.

Determine the value of the following call using the Black-Scholes model. The stock currently sells for $95, and the instantaneous standard deviation of the stock's return is 0.6. The call has an exercise price of $105 and has eight months to go before expiration. The continuously compounded riskless rate of interest is 8%. (Problem 5- end of chapter 23)