For all questions, interest (r) and dividend (d) rates are continuously compounded unless specified otherwise.

does not need stock price do on excel with range of stock prices for example from 70-110$ and show formulas on excel and how

Q5) r= 8% (c.c.), T (option expiry) = 6 months. Assume we have the following table of option prices: Strike Put Call Ki = 80 4.40 26.60 K= 90 7.94 20.16 K] = 100 12.66 14.96 a) Use Put Call Parity to identify an arbitrage. Construct the arbitrage portfolio and compute your profit. b) If the interest rate were 1% instead of 8%, would you still have an arbitrage? If so, what would your profit be? Q5) r= 8% (c.c.), T (option expiry) = 6 months. Assume we have the following table of option prices: Strike Put Call Ki = 80 4.40 26.60 K= 90 7.94 20.16 K] = 100 12.66 14.96 a) Use Put Call Parity to identify an arbitrage. Construct the arbitrage portfolio and compute your profit. b) If the interest rate were 1% instead of 8%, would you still have an arbitrage? If so, what would your profit be