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Suppose I notice the following prices: American put with exercise price $50 and one month to maturity is selling for $3.20. Another American put on
Suppose I notice the following prices: American put with exercise price $50 and one month to maturity is selling for $3.20. Another American put on the same stock with exercise price $50 and two months to maturity is selling for $3.10. Explain what you would do.
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