You have three European 3-month XYZ calls with exercise prices 100,120 and 130. The calls are at

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You have three European 3-month XYZ calls with exercise prices 100,120 and 130. The calls are at $8, 5 and 3, respectively. Do you see any arbitrage opportunity? Justify your answer.

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Marketing Mistakes and Successes

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Authors: James F. Dartley

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Posted Date: Nov 16, 2017 04:56 AM

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You have three European 3-month XYZ calls with exercise prices 100,120 and 130. The calls are at

Question:

Expert Answer:

There is no arbitrage opportunity refer example below for better understanding Strike arbitrage is a ... View the full answer

Marketing Mistakes and Successes

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