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please explain your choice in detail Which of the following statements is true in a market in which no arbitrage opportunities are available?
please explain your choice in detail
Which of the following statements is true in a market in which no arbitrage opportunities are available?
1) A long forward for delivery in one year at $100 is worth more than a long call option struck at $100 that expires in one year
2) A short forward which makes delivery in one year at $100 is worth more than a long put option struck at $100 that expires in one year
3) A short forward which makes delivery in one year at $100 is worth more than a short call option struck at $100 that expires in one yea
4) A long forward for delivery in one year at $100 is worth more than a short put option struck at $100 that expires in one year