Question: 9.10 Suppose call and put prices are given by Strike 50 55 60 Call premium 18 14 9.504 Put premium 7 10.75 14.454 Find the

9.10 Suppose call and put prices are given by Strike 50

9.10 Suppose call and put prices are given by Strike 50 55 60 Call premium 18 14 9.504 Put premium 7 10.75 14.454 Find the convexity violations. What spread would you use to effect arbitrage?- Demonstrate that the spread position is an arbitrage. 9.10 Suppose call and put prices are given by Strike 50 55 60 Call premium 18 14 9.504 Put premium 7 10.75 14.454 Find the convexity violations. What spread would you use to effect arbitrage?- Demonstrate that the spread position is an arbitrage

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