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QUESTION 8 Consider two corresponding options, consisting of a call and a put with the exact same parameter values. For this pair, the current price

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QUESTION 8 Consider two "corresponding" options, consisting of a call and a put with the exact same parameter values. For this pair, the current price of the underlying asset is $83, the options have an exercise price of $80 and they expire in 5 month S. Additionally, the risk-free rate is 4p.a. What is the difference between the premium of the put option, P, and the premium of the call option, C; that is what is the value of P-C? Write the answer with two decimals; e.g., 3.24. DO NOT use the $ symbol in your answer, just write a numerical value. Of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive. NOTE: Use the continuous time version of the Put- Call Parity equation (i.e., do NOT use the book's version)

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