What is the price per share of the box spread

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Reference no: EM132826101

An investor wants to buy a box spread on Zenex Corporation stock. The box spread expires in 6 months and the strike prices of the box spread are $38.93 per share and $47.68 per share. Suppose the repo rate for continuous compounding is 2.00%.

To rule out arbitrage, what is the price per share of the box spread?

Reference no: EM132826101

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