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Current a 3-month XYZ call option with X = $105 is selling for $8 and a 3-month XYZ put option with X = $105 is selling for $10. The current 3-month risk free-rate is 5% and the XYZ is selling for $95. Is market an equilibrium market? If not, how much is total arbitrage profit and how to capture the profit?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92417116

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