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3. Which of the following is a 35-strike call option value that a valid call option pricing model could predict if the underlying stock price

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3. Which of the following is a 35-strike call option value that a valid call option pricing model could predict if the underlying stock price is currently 37.20? a. $180 per contract b. $200 per contract C. $215 per contract d. $235 per contract 4. The current market prices of the XYZ June 30-strike put and 31-strike put are $360 and $340 respectively. Which of the following is false? a. The relative prices reflect a disequilibrium. b. We could arbitrage this situation by creating a put bear spread immediately. C. Creating a put bear spread now will result in a net credit to our account. d. If we create a put bear spread now, we will profit immediately, rather than having to wait until option expiration. e. The profit diagram associated with creating a put bear spread now would utilize only the first quadrant

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