A one-month European put option on a non-dividend-paying stock is currently selling for $2.50. The stock price

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A one-month European put option on a non-dividend-paying stock is currently selling for $2.50.

The stock price is $47, the strike price is $50, and the risk-free interest rate is 6% per annum.

What opportunities are there for an arbitrageur?

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Options Futures And Other Derivatives

ISBN: 9780130090560

5th Edition

Authors: John C. Hull

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Question Posted: Oct 18, 2024 07:02 AM

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A one-month European put option on a non-dividend-paying stock is currently selling for $2.50. The stock price

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Options Futures And Other Derivatives

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