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Google’s stock is trading at a price of $905. A call option with 3 months to...

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Finance

Google’s stock is trading at a price of $905. A call option with3 months to maturity is available with an exercise price of $890with a premium of $61.40. A put option with an exercise price of$890 trades at a premium of $48. The risk free rate of interest is5% per year, create a long synthetic call position.

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As per putcall parity Call Premium Present Value of Strike Price Put Premium Stock Price for a call and put option with the same underlying same expiry and same strike price Strike Price 890 Current Stock Price 905 Call Premium 614 and Put    See Answer
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