Question S2 [10 Points] The spot price of the non dividend-paying) Stock C is 320NOK,...
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Question S2 [10 Points] The spot price of the non dividend-paying) Stock C is 320NOK, its two-year forward price is 343 NOK. The premium of a call option on Stock C, with strike equal to 300 NOK and maturity two years, is 70 NOK. If the put option with the same strike and maturity on Stock C has a premium equal to 25, is there an arbitrage opportunity? If yes describe it
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