Consider the following information on put and call options on a stock: Call price = $6.60

Put price = $8.90

Exercise price = $90

Days to option expiration = 148 Current stock price = $87.42 Risk-free rate = 7 percent

a) Based on put-call parity to calculate prices of the following:

i. Synthetic put option

ii. Synthetic underlying stock

iii. Synthetic call option

iv. Synthetic bond

b) For each of the derivative in Part A, explain if there is any mispricing. If thee is mispricing then illustrate an arbitrage transaction using a synthetic call (two sided).