Question
In two different markets, you see the following prices. Market #1: 20 Call = 5.50, 20 Put = 3.50, Underlying = 22 Market #2: 110
In two different markets, you see the following prices. Market #1: 20 Call = 5.50, 20 Put = 3.50, Underlying = 22 Market #2: 110 Put = 9.50, 115 Put = 2.50, Underlying = 110
You can trade in either market, but not both.
Please describe: What trades will you do to lock in the highest amount of profit? How much profit (to one decimal place)?
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Financial Economics
Authors: Frank J. Fabozzi, Edwin H. Neave, Guofu Zhou
1st Edition
0470596201, 9780470596203
