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Use put call parity to determine the size of the arbitrage profit AT TIME T = 3 / 1 2 arising from the following situation.
Use put call parity to determine the size of the arbitrage profit AT TIME T arising from the following situation. All options are European.
So $
T for both the call and the put
K for both the call and the put
c $
p $
r cont comp. annual rate
Dividend $ in one month
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Answer Arbitrage Profit using PutCall Parity Putcall parity tells us the relationship between a call C a put P the underlying stock price S the strike ...Get Instant Access to Expert-Tailored Solutions
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