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A 75-day European Put option, to sell 1 unit of SPY for $3300, costs $51. The rate at which you can borrow or lend is
A 75-day European Put option, to sell 1 unit of SPY for $3300, costs $51. The rate at which you can borrow or lend is 1.5% a year. Are there any arbitrage opportunities? Justify your answer by suggesting a strategy to take advantage of it, if there is an arbitrage opportunity.
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