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A stock's current price is $80 and the risk free rate is 4%. A call with a 6-month expiration and $89 exercise price is going
A stock's current price is $80 and the risk free rate is 4%. A call with a 6-month expiration and $89 exercise price is going for $12. A put with the same parameters costs 14. You believe that the call is mispriced. How much arbitrage profit could you make on a single share? |
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