Question: Question 3 (Spread Position and Arbitrage) Suppose call and put prices are given by: -'--I-__ 10.75 Find the convexity violations. What spread would you use

Question 3 (Spread Position and Arbitrage) Suppose call and put prices

Question 3 (Spread Position and Arbitrage) Suppose call and put prices are given by: -'--I-__ 10.75 Find the convexity violations. What spread would you use to effect arbitrage? Demonstrate that the spread position is an arbitrage

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