Discuss whether there is profitable strategy

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Reference no: EM131087659

Utilize the Put/Call Parity principle to analyze the following situation and discuss whether there is a profitable strategy. If there is a profitable strategy, what is it?

Stock Price = $80

Call Price = $16 - one year expiration

Put Price = $2 - one year expiration

Strike Price = $70

Risk free rate = 3%

Reference no: EM131087659

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