Question
You are currently looking at a put and call option on Motus Holdings Ltd with the same exercise price. Considering the information provided below, is
You are currently looking at a put and call option on Motus Holdings Ltd with the same exercise price. Considering the information provided below, is there an arbitrage opportunity and how would you take advantage of it?
| MTH_price | Exercise_price | Risk_free_rate | Div_yield | Time | Call_premium | Put_premium |
| 105 | 97 | 8% | 7% | 2 months | 10.99 | 2.77 |
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Banking And Finance
Authors: Brian Duignan
1st Edition
1615308946, 978-1615308941
