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On July 6 a stock is selling for 1 6 5 . 1 3 . An AUG 1 6 0 call option is selling for
On July a stock is selling for An AUG call option is selling for and
an AUG put option is selling for The expiration date is August The
riskfree rate is for the relevant time period. Check to see if the values
of the call and put conform to the putcall parity rule. If you see a violation, suggest
a strategy. Then show that the strategy works eg profitloss if stock price goes up
or down. Assume these are European options.
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