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2. Suppose call and put prices are given by: Find the convexity violations by computing the change in premium per dollar change in the strike

image text in transcribed 2. Suppose call and put prices are given by: Find the convexity violations by computing the change in premium per dollar change in the strike price. What spread would you use to effect arbitrage? (Hint: 1:5:4) Demonstrate that the spread position is an arbitrage

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