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Question 4 (20 points): A European call option and put option on a stock both have a strike price of $46 and an expirati
Posted: Sat Nov 27, 2021 5:18 pm
by answerhappygod
- Question 4 20 Points A European Call Option And Put Option On A Stock Both Have A Strike Price Of 46 And An Expirati 1 (28.37 KiB) Viewed 71 times
Question 4 (20 points): A European call option and put option on a stock both have a strike price of $46 and an expiration date in 3 months are sold at $3 and $2, respectively. The risk-free interest rate is 10% per annum, the current stock price is $43, and a $1 dividend is expected in 1 month. Identify the arbitrage opportunity open to a trader.