Describe profitable strategy

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Calc the Put-Call Parity for the following situation and Analyze the following topics: Stock Price = $40; Strike Price = $35; Risk free rate =3%; Call Price = $8 (1 yr expire); Put Price = $1 (1 yr. expire)

[1] Describe a profitable strategy

[2] Discuss/Explain in a chart how to show its payoffs (Current-Maturity)

Reference no: EM131176535

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