) A one-month European put option on a non-dividend-paying stock is currently selling for $2.50 . The stock price is $4

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answerhappygod
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) A one-month European put option on a non-dividend-paying stock is currently selling for $2.50 . The stock price is $4

Post by answerhappygod »

) A one-month European put option on a non-dividend-paying stock
is currently selling for $2.50 . The stock price is $47, the
strike price is $50, and the risk-free interest rate is 6% per
annum. What opportunities are there for an arbitrageur?
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