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A one-month European call option on a non-dividend-paying stock is currently selling for$2.50. The stock price is $45, the strike price is $50, and the
A one-month European call option on a non-dividend-paying stock is currently selling for$2.50. The stock price is $45, the strike price is $50, and the risk-free interest rate is 5% per annum. What opportunities are there for an arbitrageur?
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The Oxford Handbook Of Pricing Management
Authors: Ozalp Ozer, Robert Phillips
1st Edition
0199543178, 978-0199543175
