Assume a stock has a value of $100. the stock is expected to pay a dividend of $2 per share at year-end. an at-the-money european-style put option with one-year maturity sells for $7. if the annual interest rate is 5%, what must be the price of a 1-year at-the-money european call option on the stock? (round your answer to 2 decimal places.)

Palmer frosted flakes company offers its customers a pottery cereal bowl if they send in 3 boxtops from palmer frosted flakes boxes and $1. the company estimates that 60% of the boxtops will be redeemed. in 2012, the company sold 675,000 boxes of frosted flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. if the bowls cost palmer company $3 each, how much liability for outstanding premiums should be recorded at the end of 2012?