Question
A stock priced at $61 has three-month calls and puts with an exercise price of $55 available. The calls have a premium of $4.6, and
A stock priced at $61 has three-month calls and puts with an exercise price of $55 available. The calls have a premium of $4.6, and the puts cost $1.31. The risk-free rate is 6.2%. If the put options are mispriced, what is the profit per option assuming no transaction costs?
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
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