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A stock is trading for 92.41 and a December 95 call is trading for $4.82. Interest rates are 4% (annual) and there are 30 days
A stock is trading for 92.41 and a December 95 call is trading for $4.82. Interest rates are 4% (annual) and there are 30 days to expiration. What is the value of the 95 put according to put-call parity? If the put was trading for $6.00 what transaction would you attempt in order to do an arbitrage?
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