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1. A 1-month European put option on a non-dividend paying stock is selling for P = $1. So = $45, K = $48. r =

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1. A 1-month European put option on a non-dividend paying stock is selling for P = $1. So = $45, K = $48. r = .06 annually. Assume continuous discounting. Are there opportunities for arbitrage? If so, explain in detail the arbitrage strategy that will be used

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