What would Dajani do to synthetically create a short sold stock position by using puts, calls, and borrowing or lending BK in the market? If C = 4, P = 3, B = .95, and both S = 40 and K = 40, how would she make arbitrage? Arianne & Marlene sell a put option on a stock and they delta hedge with the underlying stock. Do they buy or sell the underlying stock. Do they benefit or not from realized volatility (movement)? What about an upward shift in the implied volatility? Fleming likes to buy calendar spreads. She sells the shorter maturity at-the- money option (1 month) and buys the longer maturity at-the-money option (2 months). She thus pays premium. What is she betting on in terms of price movement? If the implied volatility rises for by the same percent for both the 1-month and the 2-month options, what happens to the value of her position, does she win or lose or can we tell? What if the implied volatility rises for the 1-month and declines for the 2-month? What would Dajani do to synthetically create a short sold stock position by using puts, calls, and borrowing or lending BK in the market? If C = 4, P = 3, B = .95, and both S = 40 and K = 40, how would she make arbitrage? Arianne & Marlene sell a put option on a stock and they delta hedge with the underlying stock. Do they buy or sell the underlying stock. Do they benefit or not from realized volatility (movement)? What about an upward shift in the implied volatility? Fleming likes to buy calendar spreads. She sells the shorter maturity at-the- money option (1 month) and buys the longer maturity at-the-money option (2 months). She thus pays premium. What is she betting on in terms of price movement? If the implied volatility rises for by the same percent for both the 1-month and the 2-month options, what happens to the value of her position, does she win or lose or can we tell? What if the implied volatility rises for the 1-month and declines for the 2-month