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The current price of YBM stock S is $101. European options with a strike price K = $100 and maturing in T = 6 months
The current price of YBM stock S is $101. European options with a strike price K = $100 and maturing in T = 6 months trade on YBM. The con-tinuously compounded, risk-free interest rate r is 5 percent per year. If the call price c is $7.50, the put price p is $4.60, then the arbitrage profits that you can make today by trading one contract of each option (one contract is based on 100 shares) are:
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