Question
The spot price for YD stock is $150. There are calls and puts traded on YD stock with a strike price $150 and maturity 6
The spot price for YD stock is $150. There are calls and puts traded on YD stock with a strike price $150 and maturity 6 months. The call price is $3.5 and the put is $1.25. The riskfree rate (continuously compounded) is 5%. Is any arbitrage opportunity? If so, how can you take advantage?
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Corporate Finance Investment And Advisory Applications
Authors: Jesse McDougall, Patrick Boyle
1st Edition
1530116597, 9781530116591
