Question: QUESTION 4 Assume zero rates and no dividends, the forward price is $100. If the call and the put (at K=80 and same T) are

QUESTION 4 "Assume zero rates and no dividends, the forward price is $100. If the call and the put (at K=80 and same T) are quoted at $26 and $5, resp For Blank 2 :re is an arbitrage and you can lock in an arbitrage profit by ""buy"" or ""sell"" a call, ""buy"" or ""sell"" a put, and ""long"" or ""short"" the forward all at K=80 and the same expiry T. How much will be the arbitrage profit in US dollar? (in integers ) QUESTION 5 "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call (at K=80) is quoted at $101? ""buy"" or ""sell"" the call at K=100 for and "buy" or ""sell"" the forward at K=0 for This allows you to net dollar today with no future liability." QUESTION 6 "Assume zero rates and no dividends, the forward price is $100. How to make an arbitrage trade if the call (at K=80) is quoted at $19? Answer: ""buy"" or ""sell"" the call at K=80 for and ""buy"" or ""sell"" the forward at K=80 for This allows you to net dollar today and with non-negative future payoffs."

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