With respect to the liquidity preference theory, which of the following are false in explaining the decrease in the yield on long-term corporate bonds versus short-term bonds? [I] Increase in future inflation expectations [II] Decrease in expected interest rate volatility [III] Expectation of an upcoming market rally

		I only
		II only
		I and II only
		I and III only
		I, II and III only

A call option on GMSS stock with a strike price of $20 and an expiration date 9 months from now is worth $2 today. A put option on GMSS stock with a strike price of $20 and an expiration date 9 months from now is worth $5.58 today. The risk-free rate of return is 4%, and the stock pays no dividends. According to put-call parity, the GMSS stock should be worth ________ today. (Use continuous compounding interest rate)?

		$15.71
		$15.98
		$16.38
		$33.98
		None of the above