Suppose a Situation Exists Where You Can Purchase a Share

question 21

Essay

Suppose a situation exists where you can purchase a share of stock for $25, purchase a put option on the stock for $3, and write a call option against the stock for $4. Also suppose that holding these three positions guarantees a payoff of $30 one year from today. If the risk free rate is 20%, does put-call parity hold? If not, then what new price of the put option would allow put-call parity to hold?

Comprehend the role and mechanism of behaviourally targeted advertisements.

Recognize the importance of credibility and trust in persuasive communication.

Identify the characteristics and importance of brand advocates in marketing.

Understand the legal framework regulating advertising practices.