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Hi sir, in the revision lecture in December 2013 b(ii) you calculated Call option as 8.418
and Put option = 8.418-30.614-25.84.
the anser should be -48.08 but you get an possetive number of 3.65 million.
am i missing something?
The last term in the put call parity formula is positive, not negative.
Therefore is is 8.418 – 30.614 + 25.84.
but sir this number you just gave still produces -48 which is different from the answer you gave in the lecture which was 3.65M.
How do we go from this 8.418 – 30.614 + 25.84 to the final answer of 3.65M?
I think you need to check your calculator again. It gives 3.644 and not -48 !!
oh sorry, I was adding up the last two amounts 30.614 + 25.84 which is 56.5M and then deducting that from 8.4M
Thank you sir for your time and patient
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