Define the parameters of the put call parity

Assignment Help Basic Statistics

Reference no: EM131307100

To test the model, you will make 5 trades using 5 different sets of data.

You may define the parameters of the put call parity or use the following assumption for the parameters:

Interest rate is 5%Transaction costs for a stock trade (selling or buying) is $10 per order.

Transaction costs for an options trade (selling or buying) is $25 per order.

Transaction costs for a bond trade (selling or buying) is $25per order.

Assume 365 days a year. Last trade price may be used for a stock, call, or put.

Reference no: EM131307100

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