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Is there an arbitrage in the following data? S=110, K= 109, r=6%, T=0.50, D=0, c=15, p=10 If this is the case, how much can be
Is there an arbitrage in the following data? S=110, K= 109, r=6%, T=0.50, D=0, c=15, p=10
If this is the case, how much can be made risk-free? Include all steps necessary to describe the design of the trading strategy and the cash flows - at the time of portfolio set-up and time of maturity.
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