Put-call parity is an important concept in options pricing which shows how the prices of puts, calls, and the underlying asset must be consistent with one another. Considering the above theory holds true, calculate the true value of put option on the stock with spot price is Rs.31 with the strike price of Rs.30 and the interest rate prevailing @10% p.a. with call price available on this strike price is Rs.3. The markets offer put premium at Rs. 2.25, is there any arbitrage opportunity exists than construct portfolio for the same. At the time of expiration if the prices are as follows, calculate the risk less profit for all scenario Prices : 20 25 30 35 40


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