Question
Hair Asia shares and a pair of 3month options with strike price of $50 are trading at the prices in the table below. Assuming the
Hair Asia shares and a pair of 3month options with strike price of $50 are trading at the prices in the table below. Assuming the 3month riskfree interest rate (with continuous compounding) is 10% p.a. There is no arbitrage opportunity in this set of prices. Share Price Call Premium Put Premium $52.00 $4.50 $1.26 is it true or false
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Financial Management Core Concepts
Authors: Raymond Brooks
3rd Edition
0133866742, 9780133866742
