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Business, 17.04.2020 01:32 andrejr0330jr

Jillo, Inc. stock is selling for $54.70 per share. Calls and puts with a $55 strike and 40 days until expiration are selling for $1.65 and $1.23, respectively. Assume the annual risk-free continuously compounded interest rate is 10% and use continuous compounding of interest in all your calculations for this problem. What potential arbitrage profit exists?

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Jillo, Inc. stock is selling for $54.70 per share. Calls and puts with a $55 strike and 40 days unti...
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