A european call option and put option on a stock both have, Ask an Expert

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A european call option and put option on a stock both have a strike price of $20 and an expiration date in three months. Both sell for $3. The current stock price is $19, and a $1 dividend is expect in one month. Identify the arbitrage opportunity and explain the necessary steps to make an arbitrage profit.

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Financial Management, Finance

Category:- Financial Management
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