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Suppose the current price of Narver Network Systems stock is $ 4 9 . 8 9 per share. In each of the next two years,
Suppose the current price of Narver Network Systems stock is $ per share. In each of the next two years, the
stock price will either increase by or decrease by The oneyear riskfree rate of interest will remain
constant. Suppose the put option with a strike price of $ actually sold today for $ You do not know what the
option will trade for next period. Describe a trading strategy that will yield arbitrage profits.
The price of the twoyear put is $
Round to the nearest cent.
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