Look at the Facebook option quotes in Figure 14.1 and focus on the call and put options with a strike price of $80. Can you use put-call parity to infer what the market price of Facebook stock must have been when these option prices were quoted? To keep things simple, assume the options expire in one month, and that the risk-free rate at the time was 0%. (Hint: To use put-call parity, you need to find the market price of a risk-free, zero-coupon bond with a face value equal o the strike price of the options.) Now, focus on the Facebook call and put options that have a strike price of $87.50. If you use put-call parity to find the price of Facebook stock at the time those call prices were quoted, would you expect to get the same answer that you found above? Do you in fact get the same answer? The market price of Facebook stock, with a strike price of $80, is $ (Round to the nearest cent.) The market price of Facebook stock, with a strike price of $87.50, is $ (Round to the nearest cent.) Would you expect to get the same answer that you found above? Do you in fact get the same answer? (Select the best answer below.) A. The value found should be identical because the same stock (Facebook) is the underlying asset. B. The value found should not be identical, even though the same stock (Facebook) is the underlying asset. FIGURE 14.1 Quotations for Facebook Stock Options The quotes for calls and puts of a specified expiration period are listed down eithe In addition to the last price the option traded at for the day and its end-of-day bid from the previous day's last transaction price is shown. (Source: Data from http:// accessed July 6, 2015.) Option Chain | Most Actives | Greeks FB Options: Composite Calls & Puts Near the Money Type: Monthl Jul 15| Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 | Jan 17|N Option Chain for Facebook, Inc. (FB) Calls Last Chg Bid Ask Vol Open Int Root Strike Puts Last Chg Aug 21, 2015 8.40 -0.20 8.35 8.50 233 3142 FB 80 Aug 21, 2015 1.22 0.03 Aug 21, 2015 6.60 -0.10 6.50 6.60 109 5118 FB 82.5 Aug 21, 2015 1.85 0.04 Aug 21, 2015 4.90 -0.20 4.90 4.95 2330 66167 FB 85 Aug 21, 2015 2.68 0.03 Aug 21, 2015 3.53 -0.17 3.50 3.55 1493 14194 FB 87.5 Aug 21, 2015 3.85 Aug 21, 2015 2.44 -0.14 2.42 2.43 2518 18663 FB 90 Aug 21, 2015 5.15 -0.05