Question
A two-month European put option on a non-dividend-paying stock is currently selling for $2.00. The stock price is $52, the strike price is $55, and
A two-month European put option on a non-dividend-paying stock is currently selling for $2.00. The stock price is $52, the strike price is $55, and the risk-free interest rate is 5% per annum. What opportunities are there for an arbitrageur?
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Financial Institutions Investments And Management An Introduction
Authors: Herbert B. Mayo
8th Edition
0324178174, 9780324178173
