Given that exercise price is 75 call option premium is 35


Given that exercise price is $75, call option premium is $3.5, put option premium is $ 1, both options have a time to maturity of 32 days, and the riskfree rate is 5o/o p.a., please show how you could create a "synthetic stock" that could serve as the underlying asset of the two European options. Deteimine the price of the synthetic stock

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Given that exercise price is 75 call option premium is 35
Reference No:- TGS01465914

Expected delivery within 24 Hours