A European call and put both have a strike price of $20 and expire in...

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Accounting

A European call and put both have a strike price of $20 and expire in 3 months. Both sell for $1.5. Assume the annual interest rate is 12%, the current stock price is $19 and the dividend yield is 5%. What opportunities are available to an arbitrageur? Show the cash flows associated with your arbitrage strategy

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