Question
Suppose the European call and put options with strike price $20 and maturity date in 1 month cost $2.0 and $1.0, respectively. The underlying stock
Suppose the European call and put options with strike price $20 and maturity date in 1 month cost $2.0 and $1.0, respectively. The underlying stock price is $18 and the risk-free interest rate is 0.08%. (a) Is there an arbitrage opportunity? (b) If yes, how would you implement arbitrage opportunity?
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The Essential Credit Repair Handbook
Authors: Deborah McNaughton
1st Edition
160163160X, 978-1601631602
