Note: For the following problems, assume that all the options discussed are European options. Please write your final numerical answer(s) in the box below each question. 1. Here are the current prices of Starbucks Co. (SBUX) options expiring in November 2018 (two months to expiration): Strike Price $17.50 $25.00 Call $3.30 Put Missing S4.87 Missing Starbucks stock currently trades at $20.45 per share. Its next dividend isn't due for three months, and Treasury bill yield is 3.60% per annum, or 0.60% over the two month period. What are the missing options' prices? Put with $17.50 strike price: Call with $25.00 strike price: 2. Suppose that, as you are checking the option prices, the price of November call with strike price of $17.50 rises to $6.70 and the put option with the same strike price drops to $0.05. Assuming the same risk-free rate as above, what is the current price of Starbucks stock? Page 1