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4) Suppose that a certain stock S is trading at $100. A 1-year call with strike K = 100 is trading at $.75. If the

4) Suppose that a certain stock S is trading at $100. A 1-year call with strike K = 100 is trading at $.75. If the 1- year risk-free rate is 1% and S does not pay dividends, prove that there is an arbitrage opportunity

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