Question: Tabulate the portfolio value and graph BOTH the value and Payoff for the following portfolio: Long July Call E = $65 C 65 = $3.50

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

Long July Call E = $65 C65 = $3.50 and Short July Call E = $75 C75 = $1.50

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

E = 90 ,S = $87, 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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