Question
A stock is selling at $25, a 12-month put with the strike price of 18 is selling for $7, a 12-month call with the strike
A stock is selling at $25, a 12-month put with the strike price of 18 is selling for $7, a 12-month call with the strike price of 18 is selling for $10, the risk-free rate is 10%. What is the today's value of the potential arbitrage profit?
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, William J. Kretlow
11th Edition
0324653506, 978-0324653502
