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Business, 12.03.2020 18:35 KadaLearns

A four-month European call option on a dividend-paying stock is currently selling for $5. The stock price is $64, the strike price is $60, and a dividend of $0.80 is expected in one month. The risk-free interest rate is 12% per annum for all maturities. What opportunities are there for an arbitrageur

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A four-month European call option on a dividend-paying stock is currently selling for $5. The stock...
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