The price of the stock is $37 and interest rates are 8% per annum continuously compounded and

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The price of the stock is $37 and interest rates are 8% per annum continuously compounded and there are 2 years to expiration. If the price of the Call with strike of 40 is $9 per share quoted price and the price of the Put with strike of 40 is $7 per share quoted price then: a. Find the quoted per share price of the 40 conversion. b. Find the quoted per share value of the 40 conversion. c. Find the price of synthetic stock using a strike of 40. d. Which one would customers prefer? Natural or Synthetic?

Posted Date: May 18, 2024 08:15 PM

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The price of the stock is $37 and interest rates are 8% per annum continuously compounded and

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