Question
European Mar and Jun 50 puts are trading for $4 and $3, respectively. What do you do if the risk free rate is 10% per
European Mar and Jun 50 puts are trading for $4 and $3, respectively. What do you do if the risk free rate is 10% per year and you think you have an arbitrage opportunity? Justify your answer How do stock dividends affect an option position? Give one example.
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Fundamentals of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
3rd edition
1118845897, 978-1118845899
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