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(D) Use the following information to examine any arbitrage opportunities due to an European style option mispricing. If so, calculate any arbitrage profit when the

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(D) Use the following information to examine any arbitrage opportunities due to an European style option mispricing. If so, calculate any arbitrage profit when the MCV stock is $ 50. Initial Values MCV Stock Price (S.) Exercise Price (strike Price (K) Time until expiration (t) Risk-free interest rate (r) Call Premium (C) Put Premium (P) $ 50 $ 50 6 Months 6.00% $ 4.75 $ 3 (04 Marks)

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