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The interest rate is r=0. You observe the following prices in the market (all options are on the same underlying, with the same maturity time

image text in transcribed The interest rate is r=0. You observe the following prices in the market (all options are on the same underlying, with the same maturity time T ): - The stock trades at S0=100. - A straddle with K=100 trades at 10.0 . - A strip with K=100 trades at 15.0. - A strap with K=100 trades at 15.0. - A strangle with K1=95 and K2=105 trades at 5 - A butterfly spread with K1=95 and K2=105 trades at 2 . Describe a risk-free strategy that involves trading only these instruments

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