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15.a. In theory, what is the cost of a synthetic short position in Netflix? Assume you want to establish this position when S0=$600 which was
15.a. In theory, what is the cost of a synthetic short position in Netflix? Assume you want to establish this position when S0=$600 which was the actual stock price around 1yr ago (September-October '21). Discount rate of 15\%. 6 month contract. You want this position on roughly \$1mm notional value which means you need 17 contracts. Remember a cash escrow account is a cost if you need to sell an uncovered option to execute this trade. 25% volatility. 15.b. Using the put and call prices from part Q15.a, 6 months later the stock closed at $375.A) What is the payoff in $ s on the option strategy and B) what is the holding period return
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