Question
5. Can you replicate the payoff of a call option (create a synthetic call), using a bond, a stock and a put option? If S=$40,
5. Can you replicate the payoff of a call option (create a synthetic call), using a bond, a stock and a put option? If S=$40, X=$40, rf=6%, T=1, and p=$3, how much would it cost to establish this call position?
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Comparative Public Budgeting
Authors: George M Guess
2nd Edition
1316648109, 978-1316648100
