Question
Assume that you observe the following variables relating to a non-dividend-paying stock: S = $39, X = $39, r = .08/annum, T = .25 years,
Assume that you observe the following variables relating to a non-dividend-paying stock:
S = $39, X = $39, r = .08/annum, T = .25 years,
CE = $2.00, PE = $4.50
Demonstrate that a violation of Put-Call Parity exists.
How should this violation be exploited?
Clearly list every individual action step to be taken today and every individual action step to be taken 3 months from today.
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Public School Finance Decoded
Authors: Jay C. Toland
1st Edition
1475827679, 978-1475827675
