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The market price of a share is 100 pence, a call premium with a strike price of 80 pence is 40 pence, the risk-free rate

The market price of a share is 100 pence, a call premium with a strike price of 80 pence is 40 pence, the risk-free rate of interest is 4% and the expiration is in two years time. According to Put-Call parity what is an appropriate value for the put premium? Explain how to construct a synthetic put option.

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