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A stock priced at $65 has three-month calls and puts with an exercise price of $55 available. The calls have a premium of $5.68, and
A stock priced at $65 has three-month calls and puts with an exercise price of $55 available. The calls have a premium of $5.68, and the puts cost $0.73. The risk-free rate is 3.6%. If the put options are mispriced, what is the profit per option assuming no transaction costs? Round to four decimal places
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