Question
A 1-year European put option on a non-dividend-paying stock with a strike price of $80 is currently priced at$8. And another 1-year European put option
A 1-year European put option on a non-dividend-paying stock with a strike price of $80 is currently priced at$8. And another 1-year European put option on the same stock with a strike price of $90 is priced at$9. Are there any arbitrage opportunities exiting in these two options?
DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
