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3 Options Pricing . Given the following variables: S = $55, E = $75, T = 1 year, r = 5%, and P = $20
3 Options Pricing . Given the following variables: S = $55, E = $75, T = 1 year, r = 5%, and P = $20 (put option); if the call option is selling for $10 (C = $10), what arbitrage opportunity exists? Outline your strategy and the profit to be realized, please include your calculation in details. 3 Options Pricing . Given the following variables: S = $55, E = $75, T = 1 year, r = 5%, and P = $20 (put option); if the call option is selling for $10 (C = $10), what arbitrage opportunity exists? Outline your strategy and the profit to be realized, please include your calculation in details
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