European Mar and Jun 50 puts are trading for $4 and $3, respectively. What do you do
Fantastic news! We've Found the answer you've been seeking!
Question:
European Mar and Jun 50 puts are trading for $4 and $3, respectively. What do you do if the risk free rate is 10% per year and you think you have an arbitrage opportunity? Justify your answer How do stock dividends affect an option position? Give one example.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1118845899
3rd edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Posted Date: