Suppose a trader quotes a put price of $6.Then,you can make an immediate arbitrage profit of:
A) $2.41 by buying the synthetic put and selling the market-quoted put
B) $2.41 by selling the synthetic put and buying the market-quoted put
C) $7.66 by buying the synthetic put and selling the market-quoted put
D) $7.66 by selling the synthetic put and buying the market-quoted put
E) None of these answers are correct.
Correct Answer:
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