Business
Business, 20.12.2019 07:31, residentevil7k

a 2-month european put option on a non-dividend paying stock is currently selling for $2. the stock price is $47, the strike price is $50, and the risk-free rate is 6% per year (with continuous compounding) for all maturities. does this create any arbitrage opportunity? why? design a strategy to take advantage of this opportunity and specify the profit you make.

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a 2-month european put option on a non-dividend paying stock is currently selling for $2. the stock...

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