Suppose that the current stock price is 90 the exercise


Suppose that the current stock price is $90, the exercise price is $100, the annually compounded interest rate is 5 percent, the stock pays a $1 dividend in the next instant, and the quoted put price is $6 for a one year option.

Identify the appropriate arbitrage opportunity and show the appropriate arbitrage strategy.

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Financial Management: Suppose that the current stock price is 90 the exercise
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