Question: A trade that should be profitable when the BSM call option price is less than the observed market price would involve _ _ _ _
A trade that should be profitable when the BSM call option price is less than the observed market price would involve
Buying the call and buying a put, buying the stock and borrowing money.
Selling the call and buying a put, buying the stock and borrowing money.
Buying the put and selling the call.
Selling the call and buying the put.
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