Describe the Form of some ordinary objects around you, in accordance with Plato’s theory. How do you know whether an object is defined by one Form or another? What can….
Be specific about the strategy you need to implement.
Your friend George Costanza tells you that he can borrow money for one year at the current T-Bill rate + 2.00%, “an unbeatable rate” he says. You are not impressed and tell George that you can do better than that: you can borrow money for one year at the T-Bill rate itself! “No way” says George, “no bank would lend you money that cheap”. You reply “George, my friend, you disappoint me. I don’t need a bank to lend me the money. I simply need European put and European call stock options in addition to the stock they are written on “ With the help of a payoff table and arbitrage arguments show George that you are not blowing smoke (i.e., that you can indeed borrow money at the risk-free rate if you are able to take long and short positions in the assets you mentioned above: stock and options.). Be specific about the strategy you need to implement. Since no numbers are provided, your demonstration will have to be done “with symbols”.