What is the value of the synthetic put

Reference no: EM131793855

Question: Consider a put and a call, both on the same underlying stock that has present price of $53. Both options have the same identical strike price of $50 and time-to-expiration of 215 days. Assume that there are no dividends expected for the coming year on the stock, the options are all European, and the interest rate is 10%. If the put premium is $3.00 and the call premium is $8.00, what is the value of the synthetic put?

Reference no: EM131793855

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