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What do the terms arbitrage and the law of a prize mean? Discuss and explain how the concepts are connected based on Put-Call Parity. Also

What do the terms "arbitrage" and "the law of a prize" mean? Discuss and explain how the concepts are connected based on Put-Call Parity. Also explain how the formula itself is connected, ie why you can put equals between the two quantities on each side of the equals sign.

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