F calls (with strike $30) are being traded at $5 whereas Fshares are being sold at $40 in the Market. You give your braker some simultaneous instructions .. (Choose the alternative that can be considered exploiting an arbitrage opportunity) Short-sell Estock at $40 || Buy the Fcall at 5 and exercise it, thus you buy the stock at the strike ($301 || Deliver the F stock and close the short position Wait a second ... There is no arbitrage opportunity here Buy the F stock at $40 || Buy the F call at $5 and exercise it, then you buy the stock at the strike (530) | Wait for the best timing to sell Buy the Fcall at $5 and wait for a reversal to take place (Your believe in mean-teversion) Question 12 0.5 pts WEN puts (with strike $40) are being traded at $5 whereas WEN shares are being sold at $30 in the Market. You give your broker some simultaneous instructions - (Choose the alternative that can be considered exploiting an arbitrage opportunity) Buy WEN stock at $30 || Buy the WEN put at $5 and exercise it, thus you sell the WEN stock at the strike (540) Wait a second ... There is no arbitrage opportunity here Buy the WEN put at $5 and wait for the stock price to be the same as the strike price Short-sell the WEN stock at $30 | Close your short position when the stock price is $0 | You got this! Question 13 0.5 pts Assume the two options below are identical except that one is European and the other one is American. The premiums are listed below. Which one is the American Option? Option Q (Premium/Price - $22 ---> Choose this option by typing Option 1 (Premium/Price $32 ---> Choose this option by typing 1 This is an algorithmic question. If by any chance Option and Option 1 take the same values. (only in such case assume the value of Option is $40 and the value of Option 1 is $50. Please message me after you complete the quiz so I can grade this question manual