Business, 30.03.2020 19:25 ashleyallred3299

A one-month European put option on a non-dividendpaying stock is currently selling for $2.50. The stock price is $47, the strike price is $50, and the risk-free interest rate is 6% per annum. What opportunities are there for an arbitrageur?When will the put be exercised?

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A one-month European put option on a non-dividendpaying stock is currently selling for $2.50. The st...

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