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Find the arbitrage strategy and cash flows

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A stock currently sells for $90 and will pay $5-dividend in year 1. 2-year European call option on this stock has the strike price of $80. The call price is $9. The risk-free rate is 4% per annum. Is there an arbitrage? If so, find the arbitrage strategy and its cash flows.

Reference no: EM133071892

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