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A stock priced at $64 has three-month calls and puts with an exercise price of $55 available. The calls have a premium of $5.59, and
A stock priced at $64 has three-month calls and puts with an exercise price of $55 available. The calls have a premium of $5.59, and the puts cost $0.69. The risk-free rate is 4.5%. If the call options are mispriced, what is the profit per option assuming no transaction costs?
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