What arbitrage, if any, is possible given the above

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Question: In the market, a 3-month European-style call is trading at 45$ and the put is trading at 75$. The underlier stock has a market value of 450$, the strike is 490$ and the three month continuously compounded risk-free interest rate is 6%. What arbitrage, if any, is possible given the above? Show what happens to any arbitrage if at expiration the stock price is 1) 470$ and 2) 510$.

Reference no: EM133377332

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