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The stock polarbear.com trades on both the south pole stock exchange and the North Pole Stock exchange. a) Suppose the price on the North Pole
The stock polarbear.com trades on both the south pole stock exchange and the North Pole Stock exchange. a) Suppose the price on the North Pole is $18. What does the No-Arbitrage Condition say about the price on the South Pole? b) Suppose the price on the North Polie is $18 and the price on the South pole is $17? How can you make an arbitrage profit? c) Suppose the the price on the North Pole is $18 that buying or selling on the North Pole costs $2 and that buying or selling on the south pole is free. What does the No-Arbitrage condition say about the price on the south pole
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