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1. When you looked at the newspaper quotes for options on ABC stock, you saw that a February call option with X=37.5 is priced at

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1. When you looked at the newspaper quotes for options on ABC stock, you saw that a February call option with X=37.5 is priced at 6.375 , whereas the April call option with the same exercise price is priced at 6 . Can you devise an arbitrage out of these prices? Describe an arbitrage strategy

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