Pricing an option is easy because every input is perfectly observable, especially the volatility parameter.

True

False

The price of a European call option on a non-dividend-paying stock with a strike price of $60 is $11. The stock price is $65, the annually compounded risk-free rate is 4% and the time to maturity is one year. What is the price of a one-year European put option on the stock with a strike price of $60?

8.40

3.69

133.69

11.00