The current price of a stock is $36, and the annual risk-free rate is 3%. A call option with a strike price of $30 and with 1 year until expiration has a current value of $7.10. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.