A stock of Xoom Inc. is selling at $40, a 3-month European $50 put on Xoom is

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A stock of Xoom Inc. is selling at $40, a 3-month European $50 put on Xoom is selling for $11 and a 12-month European $50 call on Xoom is selling for $5.22. The risk-free rate is 10%. Calculate the today's value of potential arbitrage profit?

Related Book For answer-question

Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Posted Date: Jun 07, 2024 08:19 AM

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A stock of Xoom Inc. is selling at $40, a 3-month European $50 put on Xoom is

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Fundamentals of Futures and Options Markets

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