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the common stock of the p.u.t.t. corporation has been trading in a narrow price range for the past month, and you are convinced it is going to break far out of that range in the next 3 months. you do not know whether it will go up or down, however. the current price of the stock is $120 per share, and the price of a 3-month call option at an exercise price of $120 is $5.20. a. if the risk-free interest rate is 7% per year, what must be the price of a 3-month put option on p.u.t.t. stock at an exercise price of $120? (the stock pays no dividends.)

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