A stock is priced at $34. The continuously compounded risk-free rate of interestis 4% and dividends are paid continuously at 9%. Harry creates a synthetic 6-month European call option has an exercise price of $22. It is done by buying a 6-month put option on the stock. What is the amount that Harry should borrow? It was found that an exercise call price of S7 and an exercise price of $2. What is the arbitrage profit possible and the transactions required to obtain this profit? Repeat this with a continuously compounded risk-free rate of interest of 5% and a continuously compounded rate of 10%. A stock is priced at $34. The continuously compounded risk-free rate of interestis 4% and dividends are paid continuously at 9%. Harry creates a synthetic 6-month European call option has an exercise price of $22. It is done by buying a 6-month put option on the stock. What is the amount that Harry should borrow? It was found that an exercise call price of S7 and an exercise price of $2. What is the arbitrage profit possible and the transactions required to obtain this profit? Repeat this with a continuously compounded risk-free rate of interest of 5% and a continuously compounded rate of 10%