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The stock price is $100. Interest rate is 1%. The price of a 2 year, 102 call option is $23. Using put-call parity, what is
The stock price is $100. Interest rate is 1%. The price of a 2 year, 102 call option is $23.
Using put-call parity, what is the price of a 2 year,102 put option?
You find that the price of the 102 put is actually $19. What would you do to earn a riskless profit? (What positions would you enter?)
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