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8. There is a 6-month European call option on a non-dividend-paying stock with a strike...

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Accounting

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8. There is a 6-month European call option on a non-dividend-paying stock with a strike price of $75. The current stock price is $80 and the risk-free interest rate is 10% per annum. a) What is the lower bound for the price of the call option? b) Is there any arbitrage opportunity if the price of the call option is $8? If so, describe how an arbitrageur would trade

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