Which One of the Following Represents an Arbitrage Opportunity

question 10

Multiple Choice

Which one of the following represents an arbitrage opportunity?

• A) stock price of $18 and strike price of $20
• B) call price of $0.40 and put price of $0.40
• C) PCP-implied put price of $0.30 and call price of $0.28
• D) PCP-implied put price of $0.30 and put market price of $0.31
• E) PCP-implied call price of $0.20 and a put market price of $0.22

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