Question
The price of a non-dividend paying stock is $19 and the price of a 3 month European call option on the stock with a strike
The price of a non-dividend paying stock is $19 and the price of a 3 month European call option on the stock with a strike price of $20 is sold for $3. The risk free rate is 4% (compounded quarterly). Describe the arbitrage strategy and calculate the profit.
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Swing And Position Trading For Beginners Easy To Learn High Profit Method For Beginners
Authors: J.r. Lira
1st Edition
1542338522, 978-1542338523
