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9. Consider the following information: P So X II IIII|I|L || $4.75 $3 $50 $50 6.00% 6 months X S =C-P+ (1+r) r t a.
9. Consider the following information: P So X II IIII|I|L || $4.75 $3 $50 $50 6.00% 6 months X S =C-P+ (1+r) r t a. the put value should be: b. the call price should be: C. How could a person make money in this situation? Use the above information to illustrate the arbitrage opportunity by filling in the following table. Fill in the following chart. Stock Price at Option Expiration $0 $50 $100 Cash in or out from Call Cash in or out from Put Cash in or out from Loan Cash in or out from Stock Total 9. Consider the following information: P So X II IIII|I|L || $4.75 $3 $50 $50 6.00% 6 months X S =C-P+ (1+r) r t a. the put value should be: b. the call price should be: C. How could a person make money in this situation? Use the above information to illustrate the arbitrage opportunity by filling in the following table. Fill in the following chart. Stock Price at Option Expiration $0 $50 $100 Cash in or out from Call Cash in or out from Put Cash in or out from Loan Cash in or out from Stock Total
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