The current price for a put and a call option with a strike, Ask an Expert

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The current price for a put and a call option with a strike price of $30 are $9.57 and 5.20 respectively. The current stock price is $24 and the risk free rate is 3%. Is there an arbitrage opportunity. What is the investment strategy. If so, what is the net payoff when the options expire?

a) $0.75

b) $0.00

c) $6.00

d) Cannot be determined

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92373164

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