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true or false Hair Asia shares and a pair of 3month options with strike price of $50 are trading at the prices in the table
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- Hair Asia shares and a pair of 3month options with strike price of $50 are trading at the prices in the table below. Assuming the 3month riskfree interest rate (with continuous compounding) is 10% p.a. There is no arbitrage opportunity in this set of prices.
| Share Price | Call Premium | Put Premium |
| $52.00 | $4.50 | $1.26 |
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Intermediate Financial Management
Authors: Eugene BrighamPhillip Daves
1st Edition
0324594712, 9780324594713
