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Section 1 Use the put-call parity to explain: A) how to use a portfolio of call option, the underlying asset and zero- coupon bond to

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Section 1 Use the put-call parity to explain: A) how to use a portfolio of call option, the underlying asset and zero- coupon bond to replicate a put option. (2 marks) B) how to use zero-coupon bond and stock options to replicate a stock. (2 marks) C) how to use stock and zero-coupon bond to replicate a portfolio that longs a call and shorts a put. (1 mark)

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