Exhibit 20 -A Stock Currently Trades for $63

Exhibit 20.6
Use the Information Below for the Following Problem(S)
The current stock price of ABC Corporation is $53.50. ABC Corporation has the following put and call option prices that expire 6 months from today. The risk-free rate of return is 5% and the expected return on the market is 11%.
$$\begin{array} { c c c } \text { Exprcisp Price } & \text { Put Price } & \text { Call Price } \\50 & \$ 1.50 & \$ 5.75 \\55 & \$ 3.25 & \ldots\end{array}$$
-A stock currently trades for $63.Call options with a strike price of $62 sell for $4.00 and expire in 6 months.If the risk-free rate is 4% what should the price of a put option with an exercise price of $62 be worth?

A) $0.62
B) $0.98
C) $1.80
D) $3.00
E) $5.80