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Business, 21.08.2020 03:01 jennmcd17

For this problem, assume that at this moment, S = $99, r = 0.02, C100(99, T βˆ’ 1/2) βˆ’ P100(99, T βˆ’ 1/2) = $8, and T = t + 1/2 year. (a) Are there any arbitrage opportunities? If so, explain how to tackle this opportunity and determine how much money can be made.

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For this problem, assume that at this moment, S = $99, r = 0.02, C100(99, T βˆ’ 1/2) βˆ’ P100(99, T βˆ’ 1/...
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