Question: Call(50) = 9; Call(55) = 7; Put(50) = 7; Put(55) = 5. All options are on the same stock and have the same expiration time.
Call(50) = 9; Call(55) = 7; Put(50) = 7; Put(55) = 5. All options are on the same stock and have the same expiration time. Which strategy(s) yields arbitrage profit?
| A. | Buy Call(50), sell Call(55) | |
| B. | Sell Call(50), buy Call(55) | |
| C. | Buy Put(50), sell Put(55) | |
| D. | Sell Put(50), buy Put(55) | |
| E. | Both A and C | |
| F. | Both A and D | |
| G. | Both B and C | |
| H. | Both B and D |
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