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11. [6 marks] Suppose Call option prices are given by: Strike 150 Call premium 17 160 6 a These prices violate a no-arbitrage property. What

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11. [6 marks] Suppose Call option prices are given by: Strike 150 Call premium 17 160 6 a These prices violate a no-arbitrage property. What spread position would you use to effect arbitrage? Demonstrate the arbitrage

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