Question: 6. The following information is available: a) Comparing the two calls, should B series sell for more or less than A series? b) Based on

 6. The following information is available: a) Comparing the two calls,

6. The following information is available: a) Comparing the two calls, should B series sell for more or less than A series? b) Based on the information for both the call and the put for A series, determine if put-call parity holds. (use discrete put-call parity formula) c) Assume you are long in both the call and the put in the A series, what are the payoffs at maturity for both options if the share price is i) $6.50? Explain. ii) $4.50 ? Explain

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