A stock price is 40 now in 1 month it can go to 44 or 36, Ask an Expert

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A stock price is $40 now, in 1 month it can go to $44 or $36, annual interest rate is 11% with continuous compounding. Using risk-free portfolios, we can determine the value of the one-month European put with strike price $40 is 1.8. Construct a synthetic long put strategy with strike price $40 and what is the cost of this strategy?

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Financial Management, Finance

Category:- Financial Management
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