Question

A $1.75 strike call option has a $0.14 premium. The $1.75 strike put option premium is $0.12. What is the net cost for Farmer Jayne to create a synthetic short forward contract? (Assume 4.0% interest.)
A) $0.0208
B) -$0.0208
C) $0.000
D) -$0.0424

Answer

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