Question: 15 Question 15 75 points Assume zero rates and no dividends. TSLA stock price is traded at $450, and 1 year TSLA call of K-100
15 Question 15 75 points "Assume zero rates and no dividends. TSLA stock price is traded at $450, and 1 year TSLA call of K-100 stradeda 549 The angend you can pro 1 call buy or ser) and 1 forward (ory boot100 and were on TSA The arbitrage profit of dollars, and also leave you with a non negative payoff your fater (Assame each buis or her opinion w Question 15 7.5 points "Assume zoro rates and no dividends TSLAstock price is traded at $450, and 1 year TSLACall 400 is traded af $49. There anbragu and you can lock in an arbitrage pro by 1 call (buy ors) and 1 forward (buy for both at K-400 and 1-year Oy on TSLA The trade wil lock you in an arbitrage profit of dollars, and also leave you with a non negative payoff 1 year (Asume each buyer is for share in prostor
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
