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Unformatted text preview: The risk free interest rate is 2% each month. Harry sells Zack an option to exchange 10 0 for $100 in four month at $5. Is the price correct? Can you take advantage of this price, and how? 2 . (50 ) Carefully state and prove put-call parity....
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This note was uploaded on 02/17/2011 for the course ECON 4751 taught by Professor None during the Spring '11 term at Algoma University.
- Spring '11