Consider the european call option of a non-dividend-paying
Consider the European call option of a non-dividend-paying stock. Suppose that Pt = $20, K = $18, r = 6% per annum, and T - t = 0.5 year.
If the price of a European call option of the stock is $2.10, what opportunities are there for an arbitrageur?
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consider the european call option of a non-dividend-paying stock suppose that pt 20 k 18 r 6 per annum and t - t 05
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