What opportunities are there for you as an arbitrageur

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Question - AirWest stock is a listed common stock. You understand that AirWest is a non-dividendpaying stock. You also notice that the price of a European put option on that AirWest with a strike price of RM50 is RM0.80. The stock price is RM46, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year. What opportunities are there for you as an arbitrageur?

Reference no: EM133165587

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