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Problem regarding the arbitrage opportunity

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Reference no: EM131041286

If Company B's stock price is currently $360 and its intrinsic value is $390, what should you do as an investor?

A) Do nothing because there is no arbitrage opportunity here

B) Sell the stock if you own it because the stock is currently overvalued

C) Sell the stock if you own it because the stock is currently undervalued

D) Buy the stock because the stock is currently overvalued

E) Buy the stock because the stock is currently undervalued

Reference no: EM131041286

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