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10. The price of one-year and two-year European put option with strike price $100 are $10 and $4 respectively. The term-structure of interest rate is

10. The price of one-year and two-year European put option with strike price $100 are $10 and $4 respectively. The term-structure of interest rate is 10%. Is there any arbitrage opportunity? If yes, perform the arbitrage.

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