Question
A four-month European put option on a non-dividend-paying stock is currently selling for $2.50. The stock price is $41, and the strike price is $45.
A four-month European put option on a non-dividend-paying stock is currently selling for $2.50. The stock price is $41, and the strike price is $45. The riskfree interest rate is 8% per annum for all maturities. What opportunities are there for an arbitrageur? Show the cash flow table.
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Essentials Of Health Care Finance
Authors: William O. Cleverley, James O. Cleverley, Paula H. Song
7th Edition
0763789291, 978-0763789299
