Suppose that a one-year futures price is currently 35 a, Ask an Expert

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Suppose that a one-year futures price is currently 35. A one-year European call option and a one-year European put option on the futures with a strike price of 34 are both priced at 2 in the market. The risk-free interest rate is 10% per annum. Identify an arbitrage opportunity.

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Computer Engineering, Engineering

Category:- Computer Engineering
Reference No.:- M92216316

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