### Is there any arbitrage opportunities exist

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##### Reference no: EM131996474

A stock currently sells for \$31. A 3-month European call option on this stock with a strike price of \$30 has a premium of \$3. A 3-month European put option on the same stock with a strike price of \$30 has a premium of \$2.25. Assume a 10% annual continuously compounded risk-free interest rate.

Is there any arbitrage opportunities exist? If so, what are your arbitrage strategy and your profit in three months?

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 Prepare the journal entries on first trust books on december : Vargo Corp. owes \$308,000 to First Trust. The debt is a 10-year, Prepare the journal entries on First Trust's books on December 31, 2014, 2015, 2016 Calculate the intrinsic value of the call option : A stock is currently selling for \$76 per share. You could purchase a call with a strike price of \$70 for \$8. What is the arithmetic average return for these three years : Stock A exhibits the following yearly returns: Year 1 = 30%; Year 2 = -40%; Year 3 = 30%.What is the arithmetic average return for these three years? Find the? p-value at an? alpha-level of alpha : Find the? p-value at an? alpha-level of alpha equals 0.01. Is there any arbitrage opportunities exist : Is there any arbitrage opportunities exist? If so, what are your arbitrage strategy and your profit in three months? Evidence to support the claim : A professor claims that the average of scores obtained by Mathematics majors is close to the average of scores obtained by the Computer Science majors. What is the market risk premium : The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 an Calculate the upper range of confindence interval : What is the 68%, 95%, and 99% confidence interval for this stock? (Show your answer to the nearest 3 decimals) Average salary of substitute teachers in new york : A random sample of ten school districts is selected, and the daily salaries are shown. Is there evidence to support the claim at a = .05?

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