2. Supposing that you enter the options market and want to secure the sale at strike price and have the following available information: Strike = $ 62 Put = $ 8 Call = $ 9 Probable market values at maturity: 52, 55, 58, 60, 63 a) Show the net results that you would obtain under each market value when performing a sale synthetic forward. b) Show the net flows you would obtain under each market value when performing sale synthetic forward.

2. Supposing that you enter the options market and want to secure the sale at strike price and have the following available information: Strike = $ 62 Put = $ 8 Call = $ 9 Probable market values at maturity: 52, 55, 58, 60, 63 a) Show the net results that you would obtain under each market value when performing a sale synthetic forward. b) Show the net flows you would obtain under each market value when performing sale synthetic forward.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 3P: Black-Scholes Model Assume that you have been given the following information on Purcell Industries...

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