Can you explain question 1 and 2?

Question Answered step-by-step Can you explain question 1 and 2? Image transcription text1. Which observation is correct? You observe the following in the market (p. 34, 40): . The price of stock AB345is $25.98 right now the risk free rate is 1% a year, volatility is 40%. . Call, X=35, T = 1, is trading at 1.64. . Put, X=35, T= 1, is trading at 10.31 A. A call with X=36 (so one euro more) will be worth more than $1.64. … Show more… Show moreCan you explain question 1 and 2? Business Finance BUSINESS 6013B0519Y Share QuestionEmailCopy link Comments (0)