Suppose $ = $100, K = $90 and an American option has a value C =...
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Suppose $ = $100, K = $90 and an American option has a value C = $12. Since C>= max(S-K, 0), is there an arbitrage opportunity? If so, how do you exploit it? Suppose $ = $100, K = $90 and an American option has a value C = $12. Since C>= max(S-K, 0), is there an arbitrage opportunity? If so, how do you exploit it?
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