A stock is selling for $41.60. The strike price on a call, maturing in 6 months, is $45. The possible stock prices at the end of 6 months are $35.00 and $49.00. Interest rates are 5.0%. Given an underpriced option, what are the short sale proceeds in an arbitrage strategy

Answer rating: 100% (QA)

Possible outcome of stock price at end of 6 months 05 years Outcome 1 Stock price 35 Strike pric... View the full answer