2. Netflix (NFLX), a non-dividend paying stock, is trading at $613.26. Call options with one month to maturity and a strike of $615 are trading at $26.15. Put options with one month to maturity and a strike of $615 are trading at $26. You can borrow and lend at the risk free interest rate of 1% per year, compounded continuously. Use Netflix stock and the two options to construct a synthetic loan (a synthetic reverse repo). What interest rate do you earn on this loan? Is this an attractive rate? (10 points) OKB is a non-dividend paying common stock trading at $84 per share. European calls and puts on OKB with a strike price of $86 and two months to maturity are trading at $3.50 and $6.50, respectively. You have estimated that a $1 change in the stock price will result in a $0.40 change in the value of the call option. How large will the price change be of the put option if the stock price goes up by $1.00 ? (10 points)