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Question IV: (a) Verify that the price of a European put is $7.471. (b) Suppose you observe a put price of $8. What is the

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Question IV: (a) Verify that the price of a European put is $7.471. (b) Suppose you observe a put price of $8. What is the arbitrage? (c) Suppose you observe a put price of $6. What is the arbitrage? Question IV: (a) Verify that the price of a European put is $7.471. (b) Suppose you observe a put price of $8. What is the arbitrage? (c) Suppose you observe a put price of $6. What is the arbitrage

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