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  3. = current share price = $160 exercise price = $19

= Current share price = $160 Exercise price = $190 Maturity = 6...

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= Current share price = $160 Exercise price = $190 Maturity = 6 months Risk free rate of return = 5% per annum Dividend yield = 3% per annum Standard deviation of share returns -40% i Using the above data, estimate the value of a call option ii. Using the calculated call option price and other relevant data, estimate the price of a put option using the put-call parity relationship. ii. If the market value of the put option is $1 less than the value of the put option estimated in ii above, explain if there are any arbitrage opportunities. If there are arbitrage opportunities, explain the strategy you would follow to profit from it. Show detailed calculations to justify your

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