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11) Suppose that you noticed the following prices: Call premium=$12; Stock price=$61; Exercise price X=$50, for a one year European call option. The risk-free interest
11) Suppose that you noticed the following prices: Call premium=$12; Stock price=$61; Exercise price X=$50, for a one year European call option. The risk-free interest rate is 10% per year. Is there a profit opportunity here? Yes or no? If yes, how would you exploit it? If no, explain why not
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