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Business, 19.12.2019 05:31 SamaraP

Astock priced at $65 has a standard deviation of 30%. three-month calls and puts with an exercise price of $60 are available. the calls have a premium of $7.27, and the puts cost $1.10. the risk-free rate is 5%. since the theoretical value of the put is $1.525, you believe the puts are undervalued. if you construct a riskless arbitrage to exploit the mispriced puts, your arbitrage profit will be

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