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1. A European call option on a stock with an exercise price of 50 matures in 3 months; the stock price is 60 and the

1. A European call option on a stock with an exercise price of 50 matures in 3 months; the stock price is 60 and the risk-free rate is 5%. If the price of the call is 9, what arbitrage opportunity exists, if any?

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