The put option of a non dividend paying stock

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Reference no: EM131224887

Consider the put option of a non-dividend-paying stock.

Suppose that Pt = $44, K = $47, r = 6% per annum, and T - t = 0.5 year. If the European put option of the stock is selling at $1.00, what opportunities are there for an arbitrageur?

Reference no: EM131224887

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