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1. From a buyers perspective, which of the following is clearly an arbitrage? ____ A) The spot price is $78, the exercise price of a

1. From a buyers perspective, which of the following is clearly an arbitrage? ____ A) The spot price is $78, the exercise price of a call is $75, and the call premium is $5 B) The spot price is $78, the exercise price of a put is $75, and the put premium is $2 C) Both (A) and (B) D) Neither (A) nor (B)

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