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 risk-free rate is 5% p.a., please show how you could create a "synthetic stock" that could serve as the underlying asset of the two European options. Determine the price of the synthetic stock.

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Financial Management: Given that exercise price is 75 call option premium is 35
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