Is there an arbitrage opportunity


Problem

Suppose that the Forward price of the ABC stock is 100. A call option on ABC with exercise price 100 is trading at $24 and a put option with the same exercise price is trading at $18. All are with the same maturity and the company does not pay any dividends. Is there an arbitrage opportunity and if so, how can you profit from it?

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Finance Basics: Is there an arbitrage opportunity
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