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12. S = $50, C (X=$40) = $2, r=10%, T=1 year. The call is European. Is there an arbitrage opportunity here? Explain. (C=call price, P=put

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12. S = $50, C (X=$40) = $2, r=10%, T=1 year. The call is European. Is there an arbitrage opportunity here? Explain. (C=call price, P=put price, S=stock price, X=exercise price, r=risk-free rate, T=maturity.) 12. S = $50, C (X=$40) = $2, r=10%, T=1 year. The call is European. Is there an arbitrage opportunity here? Explain. (C=call price, P=put price, S=stock price, X=exercise price, r=risk-free rate, T=maturity.)

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