Which of the following best explains why many corporations issue employee stock options?

A. To align management and shareholder interests

B. To replace employer-provided insurance benefits

C. To reduce the cost of employee compensation

D. To provide an employee benefit in place of a retirement plan

What grants its owner the right but not the obligation to sell a stock at a specified price?

A. A put option

B. A futures contract

C. A call option

D. A banker's acceptance

. A call option with 3 months to expiration currently sells for $1.23. A put option with the same expiration sells for $1.67. The options are European style. The risk-free rate is 2.5 percent and the strike price of both options is $35.00. What's the current stock price?

A. $27.82

B. $32.19

C. $35.87

D. $34.34