Consider the put option of a nondividend-paying stock. Suppose that (P_{t}=) ($ 44, K=$ 47, r=6 %)
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Consider the put option of a nondividend-paying stock. Suppose that \(P_{t}=\) \(\$ 44, K=\$ 47, r=6 \%\) per annum, and \(T-t=0.5\) year. If the European put option of the stock is selling at \(\$ 1.00\), what opportunities are there for an arbitrageur?
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