Utilize the putcall parity principle to analyze the


Utilize the Put/Call Parity principle to analyze the following situation and discuss whether there is a profitable strategy. If there is a profitable strategy, what is it? Explain your calculations.

Stock Price = $80

Call Price = $16, one year expiration

Put Price = $2, one year expiration

Strike Price = $70

Risk free rate =3%

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Financial Management: Utilize the putcall parity principle to analyze the
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