Question: l( 5) Suppose that: c = 2, S0 = 20, T = 1, r = 10%, X = 18, D = 0. The call option

l( 5) Suppose that: c = 2, S0 = 20, T = 1, r = 10%, X = 18, D = 0. The call option expires in 1 year. Is there an arbitrage opportunity?

Suppose that: c = 4, S0 = 20, T = 1, r = 10%, X = 18, D = 0. The call option expires in 1 year. Is there an arbitrage opportunity?

Suppose that: p = 0.5, S0 = 37, T = 0.5, r =5%, X = 40, D = 0. The put option expires in 1 year. Is there an arbitrage opportunity?

Suppose that: p = 3.0, S0 = 37, T = 0.5, r =5%, X = 40, D = 0. The put option expires in 1 year. Is there an arbitrage opportunity?

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