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Consider the October 2015 IBM call and put options in the table, LOADING... . Ignoring the negligible interest you might earn on T-Bills over the
Consider the October 2015 IBM call and put options in the table,
LOADING...
. Ignoring the negligible interest you might earn on T-Bills over the remaining few days' life of the options, show that there is no arbitrage opportunity using put-call parity for the options with a
$ 140$140
strike price. Specifically:
a. What is your profit/loss if you buy a call and T-Bills, and sell IBM stock and a put option?
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