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Answer questions 22 and 23 based upon the following information The shares of Company A stock are trading at $30 each. A 6-month put option,

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Answer questions 22 and 23 based upon the following information The shares of Company A stock are trading at $30 each. A 6-month put option, with a price of $35, on Company A stock costs $6. A corresponding (same strike price expiration) call option on Company A stock costs $2. to and same time to Q22. You can create a risk-free borrowing (you are the borrower) by a. Buying the call, selling the put and shorting the share of stock. b. Selling the call, buying the put and shorting the share of stock c. Buying the call, selling the put and buying the share of stock. d. Selling the call, buying the put and buying the share of stock. Q23. The effective annual borrowing rate is closest to a, b. 2%. 496. . 696. d.8%

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