Question: Question 3 (Spread Position and Arbitrage) Suppose call and put prices are given by: - Put remium Find the convexity Violations. What spread would you

Question 3 (Spread Position and Arbitrage) Suppose call and put prices
are given by: - Put remium Find the convexity Violations. What spread

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

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