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4.(10 pts) Let the risky asset price satisfy Xo 100 and X 200 with probability p = 0.75 or X1-50 with probability 0.25. Further, suppose

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4.(10 pts) Let the risky asset price satisfy Xo 100 and X 200 with probability p = 0.75 or X1-50 with probability 0.25. Further, suppose the risk-free asset follows Bo 100 and Bi 100. Consider a call option with strike price K-100 and expiry date T = I. Detail an arbitrage strategy if the price of the call option was Co 20. Be specific

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