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If the call is trading at 6.0, and the put is trading at 3, and the stock is trading at 100, how can we make
If the call is trading at 6.0, and the put is trading at 3, and the stock is trading at 100, how can we make arbitrage if B=.98 and the strikes for both the call and the put are 100. In particular what do we buy or sell in the market and what do we buy or sell synthetically and specifically how do we construct this synthetic creation? How much money do we make?
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