Table 20.4 lists some prices of options on common stocks (prices are quoted to the nearest dollar).

Question:

Table 20.4 lists some prices of options on common stocks (prices are quoted to the nearest dollar). The interest rate is 10 percent a year. Can you spot any mispricing? What would you do to take advantage of it?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...