(Answered) Question - a put option and a call option with an exercise

Accounting

Question - A put option and a call option with an exercise price of $40 and three months to expiration sell for $1.05 and $5.00, respectively.

If the risk-free rate is 4.5 percent per year, compounded continuously, what is the current stock price?

A stock is currently priced at $57. A call option with an expiration of 1 year has an exercise price of $60. The risk-free rate is 2 percent per year, compounded continuously, and the standard deviation of the stock's return is infinitely large. What is the price of the call option?

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