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Market Prices for European put and call options on ABC stock are as below:

Call = $4.5

Put = $6.8

Exercise Price, X =$70

Risk Free Annual Compounded rate r = 5%

Time to expiration T = 139 days

Current Stock Price S0 = $67.32

A. Determine Synthetic call, put and stock prices using parity relations and explain your observation.

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closed as off-topic by Bob Jansen Oct 12 '15 at 18:38

This question appears to be off-topic. The users who voted to close gave this specific reason:

  • "Basic financial questions are off-topic as they are assumed to be common knowledge for those studying or working in the field of quantitative finance." – Bob Jansen
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  • $\begingroup$ Synthetic call = 4.5 - 6.80 + (70/(1.05))^139/360 $\endgroup$ – Rime Oct 12 '15 at 21:18