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1. A European call and put both have a strike price of $20 and will expire in 3 months. Both sell for $3. Assume the

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1. A European call and put both have a strike price of $20 and will expire in 3 months. Both sell for $3. Assume the annual interest rate is 12%, the current stock price is $19 and the dividend yield is 5%. What opportunities are available to an arbitrageur? Show the cash flows associated with your arbitrage strategy

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