Stock q is selling at 50 it is expected to provide 2


Stock Q is selling at $50. It is expected to provide $2 dividend in 1 ½ months. A European call with strike price $48 and a European put with strike price $49 on Q are respectively selling at $0.2 and $0.7. Their maturities are in 3 months. Continuously compounded risk-free interest rate is 2% p.a. Are there any arbitrage opportunities? Please explain using calculations.

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Financial Management: Stock q is selling at 50 it is expected to provide 2
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