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Which of the following situation will clearly present an arbitrage opportunity for a derivative holder? ____ A) The spot price is $68, the strike price
Which of the following situation will clearly present an arbitrage opportunity for a derivative holder? ____ A) The spot price is $68, the strike price of a call is $65 and the call premium is $5 B) The spot price is $100, carry costs are $10 and the forward price is $110 C) The spot price is $85, the strike price of a put is $72 and the put premium is $3 D) The spot price is $75, carry costs are $4 and the forward price is $80
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