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2. Suppose: Stock Price is $110 1 year maturity 105 Strike Call price $17 1 year maturity 105 Strike Put price $5 Risk free rate

2. Suppose: Stock Price is $110 1 year maturity 105 Strike Call price $17 1 year maturity 105 Strike Put price $5 Risk free rate 5% Using Put Call parity, determine if there is an arbitrage opportunity, and if so how would you capitalize on it?

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