Given the following data, determine if the put-call parity holds and explain your result. Price, $60; strike price, $55; call price, $5; put price, $4; risk-free rate, 2.5%; period, 6 months 9. Based...

Given the following data, determine if the put-call parity holds and explain your result. Price, $60; strike price, $55; call price, $5; put price, $4; risk-free rate, 2.5%; period, 6 months 9. Based on the information below, compute the Black-Scholes-Merton formula (assume a no-dividend paying stock): S0 = $70; X = $60; r = 0.025; T = 0.50 (half a year); σ = 0.60. What is the call option’s fair value?