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thank you! Microsoft (MSFT): Current Stock Price = 5225 Expiration Strike Price Call Premium Put Premium Dec 24 (24 months from now) $205 27.58 1.95
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Microsoft (MSFT): Current Stock Price = 5225 Expiration Strike Price Call Premium Put Premium Dec 24 (24 months from now) $205 27.58 1.95 Dec 24 (24 months from now) 5220 19.03 4.75 Dec 24 24 months from now) 5250 9.04 35.86 Assuming the annual risk-free rate is 2% Use the Put-Call Parity to check the option price with the $250 strike price. CP-X/(1+r)^T What is the arbitrage strategy? (Please describe which call to buy/sell, which put to buy/sell, which rate to borrow/lend for how much money, and which stock to buy or short sell at what price) Step by Step Solution
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