Nelson Corp.'s stock currently trades at $75/share. 9-month European call options on the stock carry an $80 strike price and currently cost $3. The annual risk-free rate is 4%. What is the time value of 9-month European put options on the stock with the same strike price as the calls? Round intermediate steps to four decimals and your final answer to two decimals. Do not use currency symbols or words when entering your response.

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Find the exercise value of the call options mentioned in the previous question.

A. -$2

B. $5

C. $3

D. $0

E. $2

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Suppose that Williams common stock trades for $80/share and call options on the stock have a premium of $82. Barring transactions costs, which of the following statements is true?

A. You could earn a risk-free rate of return by purchasing the call options and shorting the stock

B. You could earn a risk-free rate of return by shorting the call options and purchasing the stock

C. The market is in equilibrium.

D. Cannot be determined without knowing if the calls are American or European

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You wrote 3 European call option contracts on Echo stock. The exercise price and premium on the options are $20 and $1, respectively. Find the maximum profit you can earn from your position.

A. 300

B. 5,700

C. 6,000

D. Cannot be determined