please answer a and b for a good rating! Suppose a stock price can go up by 13.25 % or down by 11.25% over the next year. You own a one-year put on the stock. The interest rate is 12%, and the current stock price is $53. a. What exercise price leaves you indifferent between holding the put or exercising it now? (Do not round intermediate calculatio

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please answer a and b for a good rating!
$Suppose a stock price can go up by 13.25\% or down by $ 11.25 \% $ over the next year. You own a one-year put on the stock.$

Suppose a stock price can go up by 13.25\% or down by

11.25%

over the next year. You own a one-year put on the stock. The interest rate is

12%

, and the current stock price is

$53

. a. What exercise price leaves you indifferent between holding the put or exercising it now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Breakewen exarise price b. How does this break-even exercise price change if the interest rote is increased?

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(Solved): please answer a and b for a good rating! Suppose a stock price can go up by 13.25\% or down by 11.25 ...

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