Question: Consider the following exotic option whose payoff at expiration is given by the stock price squared less a strike price if it has a positive

Consider the following exotic option whose payoff at expiration is given by the stock price squared less a strike price if it has a positive value, zero otherwise:
max[S(1)2 − K, 0]
Assuming that the strike price K is $2,500, determine the value of this exotic option under the assumption of no- arbitrage. If the market price of the call is $600, how would you trade to exploit this arbitrage opportunity?

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