JD is currently trading at $62.35. One-year European Call and Put

options on JD with a strike price of $60 are trading at $5.35 and $1.57 respectively. The continuously compounded risk-free rate is 3.0%. You suspect the options are mispriced and would like to set up an arbitrage trading strategy to profit from the mispricing. How much money can you make per unit of trade? Assume there are no transaction costs other than the option premiums.  
Enter your answer to 2 decimal places eg if your answer is 0.457 enter as 0.46. If your answer is 0.4 enter as 0.40

J & Co. proposes to acquire a machine on 1-04-2018 for its business. It was cost about Rs. 1,50,00,000.

It is expected to have a working life of 3 year at a scrape value at the end of the useful life is expected to be

Rs. 40,00,000. If the machine is purchased through borrowed fund, rate of interest is 15% per annum. The

loan is repable in 3 equal installments of Rs. 50,00,000 each if the machine is acquired through lease , lease

rant would be RS. 60,00,000 per annum. Profit before depreciation and Tax are expected to be Rs.

1,00,00,000 every year. Rate of depreciation is 30%. The discount factor may be assumed at 10%. J & Co,

seeks your advice weather it should

a) Acquire the machine through own funds or borrowed funds; or

b) Take it on lease.

JD is currently trading at $62.35. One-year European Call and Put

options on JD with a strike price of $60 are trading at $5.35 and $1.57 respectively. The continuously compounded risk-free rate is 3.0%. You suspect the options are mispriced and would like to set up an arbitrage trading strategy to profit from the mispricing. How much money can you make per unit of trade? Assume there are no transaction costs other than the option premiums.  
Enter your answer to 2 decimal places eg if your answer is 0.457 enter as 0.46. If your answer is 0.4 enter as 0.40

J & Co. proposes to acquire a machine on 1-04-2018 for its business. It was cost about Rs. 1,50,00,000.

It is expected to have a working life of 3 year at a scrape value at the end of the useful life is expected to be

Rs. 40,00,000. If the machine is purchased through borrowed fund, rate of interest is 15% per annum. The

loan is repable in 3 equal installments of Rs. 50,00,000 each if the machine is acquired through lease , lease

rant would be RS. 60,00,000 per annum. Profit before depreciation and Tax are expected to be Rs.

1,00,00,000 every year. Rate of depreciation is 30%. The discount factor may be assumed at 10%. J & Co,

seeks your advice weather it should

a) Acquire the machine through own funds or borrowed funds; or

b) Take it on lease.