The current price for a put and a call option with a strike


The current price for a put and a call option with a strike price of $30 are $9.57 and 5.20 respectively. The current stock price is $24 and the risk free rate is 3%. Is there an arbitrage opportunity. What is the investment strategy. If so, what is the gain today.

a$)1.63 b)$9.49 c)$1.37 d) $0.76

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Financial Management: The current price for a put and a call option with a strike
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