A 4-month European call option on a dividend paying stock is currently selling for $5. The stock
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A 4-month European call option on a dividend paying stock is currently selling for $5. The stock price is $64, the strike price is $60, and a dividend of $0.30 is expected in I month. The risk-free interest rate is 12% per annum for all maturities. What opportun- ilies are there for an arbitrageur?
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