Use put call parity to determine the size of the arbitrage profit AT TIME T arising from the following situation. All options are European.

So $

T for both the call and the put

K for both the call and the put

c $

p $

r cont comp. annual rate

Dividend $ in one month

Answer rating: 100% (QA)

Answer Arbitrage Profit using PutCall Parity Putcall parity tells us the relationship between a call C a put P the underlying stock price S the strike ... View the full answer