Question: Hi expert can you answer this in depth please. Thank you Chegg QUESTION 2 a) Suppose the current price of a stock is 30 and

Hi expert can you answer this in depth please. Thank you Chegg

QUESTION 2 a) Suppose the current price of a stock is 30 and the 6 month- forward price is 32 with a risk-free rate 5%. Calculate the risk-free profit of an arbitrageur. [15 Marks] b) Give a definition of a coherent risk measure in mathematical terms and explain the equations. [15 Marks] c) Explain the put-call parity for European Options (20 Marks) [TOTAL 50 MARKS]

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