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financial PROBLEM 2. 14 pointsl European call and put options with exercise price $22.5 and expiration time in six months are trading at $4.12 and
financial
PROBLEM 2. 14 pointsl European call and put options with exercise price $22.5 and expiration time in six months are trading at $4.12 and $7.42. The price of the underlying stock is $19.32 and the interest rate is 4.15%. Find an arbitrage opportunity, describe the arbitrage strategy, calculate the arbitrage profit. Provide the details Step by Step Solution
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