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2. A one-month European put option on a non-dividend paying stock is currently selling for $2.50. The stock price is $47, the strike price is
2. A one-month European put option on a non-dividend paying stock is currently selling for $2.50. The stock price is $47, the strike price is $50, and the risk-free rate is 6% per annum (cc). Is there an arbitrage opportunity?
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