(5 points) Consider a 50 strike put premium of 4$, a 55 strike put premium of 8$ and a 70 strike put premium of 16$ (a) Assess whether these prices are consistent with the convexity constraint and (b) find an arbitrage opportunity to benefit from these prices (5 points) Consider a 50 strike put pr...

a To assess whether these prices are consistent with the convexity constraint we need to check if the prices satisfy the relationship between the prem ...

(5 points) Consider a 50-strike put premium of 4$, a 55-strike put premium of 8$ and...

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(5 points) Consider a 50-strike put premium of 4$, a 55-strike put premium of 8$ and...

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