Suppose the call price is $15.00 and the current Stock price is $100, where the exercise price

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Suppose the call price is $15.00 and the current Stock price is $100, where the exercise price is $100, the risk-free interest rate is 5.00% (continuously compounded), and the time to expiration is one year.

Explain how you would produce a synthetic PUT option and identify the cost.
Suppose you observe a current price of PUT with exercise price of 100 is $11 ; identify any arbitrage opportunities.

Posted Date: May 18, 2024 05:03 PM

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Suppose the call price is $15.00 and the current Stock price is $100, where the exercise price

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