cise price is

$100

, the annually compounded interest rate is 5 percent, the stock pays a

$1

dividend in the next instant, and the quoted put price is

$6

for a one-year option. Identify the appropriate arbitrage opportunity and show the appropriate arbitrage strategy.

cise price is $100, the annually compounded interest rate is 5 percent, the stock pays a $1 dividend in the next instant, and the quoted put price is $6 for a one-year option. Identify the appropriate arbitrage opportunity and show the appropriate arbitrage strategy