Question
The spot price of (the non dividend-paying) Stock C is 320NOK, its two-year forward price is 343 NOK. The premium of a call option on
The spot price of (the non dividend-paying) Stock C is 320NOK, its two-year forward price is 343 NOK. The premium of a call option on Stock C, with strike equal to 300 NOK and maturity two years, is 70 NOK. If the put option with the same strike and maturity on Stock C has a premium equal to 25, is there an arbitrage opportunity? If yes describe it.
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Finance And Financial Markets
Authors: Keith Pilbeam
3rd Edition
023023321X, 978-0230233218
