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There is a European call option with strike price 10. The option price at the initial time is 1. The stock (the underlying asset) price
There is a European call option with strike price 10. The option price at the initial time is 1. The stock (the underlying asset) price at the initial time is 10, and the stock price at the expiration time may be 12 (with probability 0.5) or 8 (with probability 0.5). The risk free interest rate is 10%. Is there any opportunity of arbitrage?
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