"Assume zero rates and no dividends, the forward price is $100. If the call and the put (at K=80 and same T ) are quoted at $26 and $5, resF""sell"HowmuchwillbethearbitrageprofitinUSdollar?(inintegers)"long""or"short""reisanarbitrageandyoucanlockinanarbitrageprofitby""buy""or""sell""theforwardallatK=80andthesameexpiryT. QUESTION 5 "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call ( at K=80) is quoted at $101 ? "buy""or"sell""theforwardatK=0forthecallatK=100forThisallowsyoutonetand""buy""or""sell""dollartodaywithnofutureliability." QUESTION 6 "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call (at K=80 ) is quoted at $19 ? Answer: ""buy"" or ""sell"" the call at K=80 for and "'buy"' or ""sell"' the forward at K=80 for This allows you to net dollar today and with non-negative future payoffs