Question: Explain the effect of dividends on both call and put premiums. Explain the effect of dividends on both call and put exercise prices. If you

  1. Explain the effect of dividends on both call and put premiums. Explain the effect of dividends on both call and put exercise prices. If you owned a put option that expired in 90 days, would you prefer to have a $1 dividend on the stock in 10 days or in 50 days. Explain your answer
  2. Explain how to create a short synthetic put. You must prove your answer.

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