Question
Your countrys leader has just imposed sanctions on another country, barring you from trading in Plutonium United Corp. However, due to complicated legal reasons, you
Your countrys leader has just imposed sanctions on another country, barring you from trading in Plutonium United Corp. However, due to complicated legal reasons, you are still allowed to trade in options on PUC. Using the information below, what is the price of 1 synthetic share of PUC? Assume PUC pays no dividends.
| Risk-free rate | 0.10% per year compounded annually |
| Current price of 1-year European call option on PUC stock with exercise price of $35.00 | $1.95 |
| Current price of 1-year European put option on PUC stock with exercise price of $35.00 | $1.83 |
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Acquisition Finance
Authors: Tom Speechley
2nd Edition
1780436599, 978-1780436593
