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2. Suppose the current stock price of TSLA is $198. Suppose further that the option prices for December expiry are Type Strike Price Call

2. Suppose the current stock price of TSLA is $198. Suppose further that the option prices for December expiry are Type Strike Price Call 190 $15.00 Call 200 $11.00 Call 210 $5.00 Construct an arbitrage trade. Assuming you are able to trade a total of 100 option contracts, calculate your minimum and maximum arbitrage profits. (HINT: Buy the wings and sell the center in the right quantities. You will need to show that this is an arbitrage trade.)

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