Question
Q1 - What is the price of European call option on same stock, same expiry and same strike price. Q2 - Explain arbitrage opportunities if
Q1 - What is the price of European call option on same stock, same expiry and same strike price.
Q2 - Explain arbitrage opportunities if European call price is $4.10 and 7.50. How much will arbitrage profit be for each?
European put costs - $2.35
Expires in 6 months
Strike = $100
S0 = $104
Dividend = $2 expected in 2 months
Rf=5% (comp cont)
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The Art Of Tehnical Analysis
Authors: Strahinja Osmokrovic
1st Edition
979-8852314680
