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True or false and please explain why Question 2: Consider the following statement:...

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Finance

True or false and please explain why

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Question 2: Consider the following statement: Today the price (premium) of an American call option with maturity 5 years on IBM is $0.81. The price of a European call option on IBM with the same maturity is $0.9. Therefore, there is an arbitrage opportunity". (8 %)

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