For a stock initial price is 100 the price of a put option


For a stock, initial price is 100, the price of a put option is 3, the price of a call option is 5, and exercise time is 3 months and exercise price is 80, nominal interest rate is 10%. Decide if there is arbitrage and why? If there is find a strategy to get positive gain.

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Financial Management: For a stock initial price is 100 the price of a put option
Reference No:- TGS01213256

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