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Suppose the effective annual interest rate is 8%, Seay Companys stock currently trades for $63 per share, and the 1-year forward price for Seay is

Suppose the effective annual interest rate is 8%, Seay Companys stock currently trades for $63 per share, and the 1-year forward price for Seay is $68.04. Suppose the premium for a 1-year call option on the stock is $11.8978, and the premium for a put with the same strike price is $9.0830. What is the strike price? (You may assume the stock pays no dividends over the next year.)
Selected Answer:

c.

$80
Answers:

a.

$70

b.

$85

c.

$80

d.

$75

e.

$65

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