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Currently an Apple stock sells for $200 and a Google stock sells for $300. The premium of an option that permits you to give up
Currently an Apple stock sells for $200 and a Google stock sells for $300. The premium of an option that permits you to give up one share of Apple, receiving one share of Google is $35. The premium of an option that permits you to receive one share of Apple by giving up one share of Google is $23. Both options will expire in 6 months. Google pays $30 dividend jut before the maturity date while Apple pays no dividend. The annual interest rate is 5%. Can you make arbitrage? If so, how much is your arbitrage? And write down the list of transactions that you need to execute
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