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Business, 24.12.2020 05:20 deaishaajennings123
For a nondividend-paying stock, you are given: i) The current stock price is 40 ii) At the end of the month the stock price will be either 42 or 38 Assume that the continuously compounded risk-free interest rate is 0.08 Given that the price of a 39-strike call option with 1 month to maturity is 1.5; what strategy can you use to take advantage of the arbitrage opportunity (if any)
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For a nondividend-paying stock, you are given: i) The current stock price is 40 ii) At the end of th...
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