Enjoy a riskless profit from the mispricing

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Suppose a current stock price of RM 11 .00, RM 10.00 call and put options on the stock with 90 days to maturity and are quoted at RM 1.75 for the call and RM 0.33 for the put. The annualized risk-free interest rate is 10%. Check the mispricing and construct arbitrate strategy to enjoy a riskless profit from the mispricing.

Reference no: EM132564862

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