A stock is selling at $40, a 3-month put at $50 is selling for $11, a 3-month
Fantastic news! We've Found the answer you've been seeking!
Question:
A stock is selling at $40, a 3-month put at $50 is selling for $11, a 3-month call at $50 is selling for $1, and the risk-free rate is 6%. How much, if anything, can be made on an arbitrage today?
Show your work.
Related Book For
Introduction To Derivatives And Risk Management
ISBN: 9781305104969
10th Edition
Authors: Don M. Chance, Robert Brooks
Posted Date: