The current spot price is $33.39 and you see ATM Puts selling for $5.96 and ATM...
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The current spot price is $33.39 and you see ATM Puts selling for $5.96 and ATM Calls selling for $8.51. What are the potential arbitrage profits if the discount rate is 5%? [note: your answer should have at least two decimal places] The current spot price is $33.39 and you see ATM Puts selling for $5.96 and ATM Calls selling for $8.51. What are the potential arbitrage profits if the discount rate is 5%? [note: your answer should have at least two decimal places]
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Forward Price Spot Price x eriskfree rate x time to maturity Assuming a oneyear time to maturity we ... View the full answer
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