PV of Strike Price = STrike Price * PVF @10% with continous Compounding
= $ 18 * e^-0.10
= $ 18 * 0.9048
= $ 16.29
As Value of Call & PV of Strilke Price < Stock Price, Put call Parity doesn't hold good.
Vc + PV of Strike Price = $ 3 + $ 16.29
= $ 19.29
Stock Price = $20
STrategy:
Hold a call, Short Sell a share and Wrie a Put option.
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