Question: 1. Tabulate the portfolio value and graph BOTH the value and Payoff for the following portfolio: Long July Call E = $65 Css = $3.50

1. Tabulate the portfolio value and graph BOTH the value and

1. Tabulate the portfolio value and graph BOTH the value and Payoff for the following portfolio: Long July Call E = $65 Css = $3.50 and Short July Call E = $75 C75 = $1.50 2. Applying the Put-Call Parity, a. Create a synthetic Put E = 90,5 = $87, C = $2.50, RF = 1.5%, t = 90 days b. If the Put is trading at $6, does an arbitrage opportunity exist? If so how would you take advantage? Calculate the arbitrage profit

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