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(TRUE/FALSE) Hair Asia shares and a pair of 3month options with strike price of $50 are trading at the prices in the table below. Assuming
(TRUE/FALSE)
- 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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College Physics
Authors: Raymond A. Serway, Jerry S. Faughn, Chris Vuille, Charles A. Bennett
7th Edition
978-0495113690
