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Consider a six-month $75 European call option on a non-dividend stock when the stock price is $80 and the risk-free interest rate is 10% CCAR.

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Consider a six-month $75 European call option on a non-dividend stock when the stock price is $80 and the risk-free interest rate is 10% CCAR. a. Calculate the lower bound for the price of call. b. Describe the likely actions of an arbitrageur if the quoted market price of the call is $8. c. What would an arbitrageur do if the market price of the call is $9

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