Question: PLEASE, DO NOT COPY AND PASTE ANY ANSWER FROM OTHER CHEGG POSTS Please show me all work so I can learn. Thanks! Prices for American

PLEASE, DO NOT COPY AND PASTE ANY ANSWER FROM OTHER CHEGG POSTS

Please show me all work so I can learn. Thanks!

PLEASE, DO NOT COPY AND PASTE ANY ANSWER FROM OTHER CHEGG POSTS

Prices for American calls with strike prices 140, 164, and 186 are provided below. Strike Price 140 164 186 40 26 9 Call Premium An arbitrage opportunity exists by creating a portfolio that involves calls with all three strike prices. Let N be the number of 140-strike calls bought or sold in the portfolio, and let M be the number of 186-strike calls bought or sold in the portfolio. Calculate the ratio N / M. 1.008 0.642 O 0.917 0.733 O 0.825 Prices for American calls with strike prices 140, 164, and 186 are provided below. Strike Price 140 164 186 40 26 9 Call Premium An arbitrage opportunity exists by creating a portfolio that involves calls with all three strike prices. Let N be the number of 140-strike calls bought or sold in the portfolio, and let M be the number of 186-strike calls bought or sold in the portfolio. Calculate the ratio N / M. 1.008 0.642 O 0.917 0.733 O 0.825

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