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7. (2 pts) ABC Inc stock sells for $30 per share. Put and call options of ABC with strike price of $34 and expiration of

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7. (2 pts) ABC Inc stock sells for $30 per share. Put and call options of ABC with strike price of $34 and expiration of 6 months are available. Both these options are priced at $7. The annual risk free rate is 4%. If the put option is priced correctly, is the call option priced right? If not, what should its price be and how can you take advantage of this arbitrage opportunity

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