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|A one-month European put option on at is currently selling for $3.50. The stock price is $48, the strike price is $50, and the risk-free
|A one-month European put option on at is currently selling for $3.50. The stock price is $48, the strike price is $50, and the risk-free interest rate is 6% per annum. The stock will pay $2 of dividend in 15 days (half a month). What opportunities are there for an arbitrageur? |A one-month European put option on at is currently selling for $3.50. The stock price is $48, the strike price is $50, and the risk-free interest rate is 6% per annum. The stock will pay $2 of dividend in 15 days (half a month). What opportunities are there for an arbitrageur
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