Question: Tabulate the portfolio value and graph BOTH the value and Payoff for the following portfolio: Long July Call E = $85 C 85 = $4.50

  1. Tabulate the portfolio value and graph BOTH the value and Payoff for the following portfolio:

Long July Call E = $85 C85 = $4.50 and Short July Call E = $95 C95 = $1.85

  1. Applying the Put-Call Parity,
  1. Create a synthetic Put

E = 95 ,S = $93, C = $2.50, RF = 1.5%, t = 90 days

  1. If the Put is trading at $6, does an arbitrage opportunity exist? If so how would you take advantage? Calculate the arbitrage profit

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