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The interest rate is 5 percent per year. The time to expiration of both options below is 6 months.

The price of a share of IMF Global is X. The call option at 200 sells for 12.975 while the put option sells for 5.037.

You can go long or short 50 shares. Given this, graph your profits from arbitrage as X goes from 200 to 205.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92766912

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