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What opportunities are there for an arbitrageur

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Reference no: EM132937879

Question - A four-month European call option on a dividend-paying stock is currently selling for $5. The stock price is $64, the strike price is $60, and a dividend of $0.80 is expected in one month. The risk-free interest rate is 12% per annum for all maturities. Based on the put-call parity theory what opportunities are there for an arbitrageur?

Reference no: EM132937879

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