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QUESTION

finance

In the following situation, identify whether an arbitrage opportunity exists if

  • The call price = $1.15.
  • Exercise price = $22.50.
  • Time to expiration = 60 days.
  • Put price = $0.55.
  • Annual interest rate = 12%.
  • The stock pays 0 dividends.
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ErnestNyambane2017
ErnestNyambane2017
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