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 year
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.
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Sport Finance
Authors: Gil Fried, Steven Shapiro, Timothy D. Deschriver
2nd Edition
0736067701, 978-0736067706
