Three put options on a stock have the same expiration date, Ask an Expert

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Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. The option prices are $3, $8, and $12, respectively. How should an arbitrager take advantage of the arbitrage opportunity if it exists? (Hint: Examine the butterfly spread created with the options.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91787395

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