Question
5. The spot price for Intel stock is $90. There are calls and puts traded on Intel stockwith a strike price $90 and maturity 6
5. The spot price for Intel stock is $90. There are calls and puts traded on Intel stockwith a strike price $90 and maturity 6 months. The call price is $2.25 and the put is $0.99.The riskfree rate (continuously compounded) is 5%. Is any arbitrage opportunity? If so,how can you take advantage?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
