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Suppose a call option on the peso with a strike of $0.145 has a premium of $0.005. What possible prices could an otherwise identical call
Suppose a call option on the peso with a strike of $0.145 has a premium of $0.005. What possible prices could an otherwise identical call with a strike of $0.150 have if there are no arbitrage opportunities?
A. Any premium between $0 and $0.005 is possible.
B. Any premium above $0.005 is possible
C. The premium must be between $0.005 and $0.010
D. Any positive premium is possible
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