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A European put option with exercise price 3 8 and a maturity of 6 months, currently costs 2 . Today's stock price is 3 4
A European put option with exercise price and a maturity of months, currently costs Today's stock price is and the interest rate is continuously compounded per annum. Is there a boundary violation? If your answer is yes, explain and calculate in detail what arbitrage opportunity it creates.
A European put option with exercise price and a maturity of months, currently costs Today's stock price is and the interest rate is continuously compounded per annum.
Is there a boundary violation? If your answer is yes, explain and calculate in detail what arbitrage opportunity it creates.
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