1.
Case summary:
Person X was hired by Company T as a financial analyst and he was asked to prepare a brief report which can be used by the executives to attain a cursory understanding on the topic. He used question and answer format to prepare the report. After the questions being drafted person X needs to answer to the questions.
To discuss: The stock price ending values and payoffs of the call option.
2.
To determine: The number of shares to buy to create a riskless payoff portfolio and payoff of the portfolio.
3.
To determine: The
4.
To determine: The replicating portfolio and arbitrage
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