Question 2 (20 marks) You are currently looking at a put and call option on Motus Holdings Ltd with the same exercise pr
Posted: Mon Nov 15, 2021 5:02 pm
Question 2 (20 marks) 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 R105 R97 8% 5% 2 months R10.99 R2.77
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 R105 R97 8% 5% 2 months R10.99 R2.77