Explain what arbitrageurs would do if the price of a S&P 500 futures put with an exercise
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Explain what arbitrageurs would do if the price of a S\&P 500 futures put with an exercise price of 2,500 ( \(\$ 250\) multiplier) were priced at 45 when the underlying futures price was trading at 2,450. What impact would their actions have in the option market on the put's price?
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In the given scenario if the price of an SP 500 futures put option with an exercise price of 2500 multiplied by 250 is priced at 45 while the underlyi...View the full answer
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