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( PCP ) The current market price of a 2 - month European put option on a nondividend - paying stock with strike price of
PCP The current market price of a month European put option on a nondividendpaying stock with strike price of $ is $ The stock price is $ and the riskfree interest rate is
a If a month call option with the same strike price is currently selling for $ what opportunities are there for an arbitrageur? How can you exploit arbitrage?
b Would the above market prices still provide an arbitrage opportunity if the option has a month maturity and the stock price is $
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