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235. Phillip Harris is a senior arbitrageur investor at Dynamic Arbitrage Investment Co. He recently found out that if the value of a box spread

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235. Phillip Harris is a senior arbitrageur investor at Dynamic Arbitrage Investment Co. He recently found out that if the value of a box spread is not equal to the present value of the payoff of the box spread, an investor could earn arbitrage profit. He also found out that if the market value of a box spread is too high, it is profitable to sell the box spread. Determine what positions should Harris take in call and put options to sell a box spread. A. Harris must buy a European call option and buy a European put option with a specific strike price (X1), and simultaneously sell a European call option and sell a European put option with a higher strike price (X2). B. Harris must sell a European call option and sell a European put option with a specific strike price (X1), and simultaneously buy a European call option and buy a European put option with a higher strike price -(X2). C. Harris must buy a European call option and sell a European put option with a specific strike price (X1), and simultaneously sell a European call option and buy a European put option with a higher strike price (X2). D. Harris must sell a European call option and buy a European put option with a specific strike price (X1), and simultaneously buy a European call option and sell a European put option with a higher strike price (X2)

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