Question: Save and Submit Click Submit to complete this assessment. Question 6 of 6 Question 6 2 points Save Answer A European call option with strike

Save and Submit Click Submit to complete this assessment. Question 6

Save and Submit Click Submit to complete this assessment. Question 6 of 6 Question 6 2 points Save Answer A European call option with strike price $36.66, maturing in 7 months time has price $4.30. The underlying stock (which pays no dividends) has price $41.34. Interest rates, with continuous compounding, are 2.50% per annum. What is the arbitrage opportunity? Buy the call option, short the stock Write the call option, buy the stock Write the call option, short the stock Buy the call option, long the stock Question 6 of 6 Click Submit to complete this assessment

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