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See Fin Quests.docx Please see attached, require answers within the hour. Thank you! 1. If the stock trades for $130, and the expiring put with

See Fin Quests.docxPlease see attached, require answers within the hour. Thank you!
1. If the stock trades for $130, and the expiring put with an exercise price of $145 trades for $18, how would you trade? 2. What is the gamma of a share of stock if the stock price is $55, and a $50 call on the stock is priced at $7 while a $50 put is priced at $4? Explain. 3. Explain why covered interest arbitrage is just like our familiar cash-and-carry transactions

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