The stock price of atlantis corp. is $43 today. the risk-free rate of return is 10%, and atlantis corp. pays no dividends. a call option on atlantis corp. stock with an exercise price of $40 and an expiration date 6 months from now is worth $5 today. a put option on atlantis corp. stock with an exercise price of $40 and an expiration date 6 months from now should be worth

a. $.05
b. $.14
c. $2
d. $3.95

You are a newspaper publisher. you are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1 million per month that you can't get out of. you also have a marginal printing cost of $.25 per paper as well as a marginal delivery cost of $.10 per paper. if sales fall by 20 percent from 1 million papers per month to 800,000 papers per month, what happens to the afc per paper?