Matteo, a master student in finance, has just started his summer internship at PeerCapital, a financial services and advisory firm. He is joining the team of Angelina Grosten that develops PeerCapital's structured investment products. In order to find out how much Matteo already understands about structured finance, Angelina has given him some financial market data and has asked him to complete the following assignment: Today is July 19, 2019 and you are considering different investment strategies related to Apple. Apple shares are currently trading at $202.59. Apple just paid a dividend on May 10, 2019 and will not pay any dividend in the next couple of months. Information on risk-free interest rates and selected options traded on Apple shares are listed in the tables on the next page.

(a) You want to replicate a long position in Apple shares using Treasury bills as well as puts and calls on Apple stock. What are possible replicating portfolios?

(1) Show the value of the portfolio at maturity for different prices of Apple stock in calculation tables and in graphs.

(2) Using mid prices for the put and call premia, check whether the the portfolio derived in part (a.1) also replicates the value of the stock today