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An investor has just obtained the following quotes for a European option on GM stock worth $31. Features of both options are following. European synthetic
An investor has just obtained the following quotes for a European option on GM stock worth $31. Features of both options are following. European synthetic call $3 European synthetic put $1 Strike price $30 Expiration 3 months Risk free rate 10% annual Find an arbitrage opportunity from put-call parity.
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