Explain how you would create a synthetic stock position and


Suppose the call price is $14.20 and the put price is $9.30 for stock options where the exercise price is $100, the risk-free interest rate is 5 percent (continuously compounded), and the time to expiration is 1 year.

Explain how you would create a synthetic stock position and identify the cost. Suppose you observe a $100 stock price, identify any arbitrage opportunities.

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Financial Management: Explain how you would create a synthetic stock position and
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