Suppose a Trader Quotes a Call Price of $4

question 17

Multiple Choice

Suppose a trader quotes a call price of $4.50.Then,you can make an immediate arbitrage profit of:

• A) $1.50 by buying the synthetic call and selling the market-quoted call
• B) $1.50 by selling the synthetic call and buying the market-quoted call
• C) $7.66 by buying the synthetic call and selling the market-quoted call
• D) $7.66 by selling the synthetic call and buying the market-quoted call
• E) None of these answers are correct.

---

Definitions:

Benjamin Barber

An American political theorist best known for his work on democracy and civic society, including the book "Strong Democracy."

Anthony Giddens

A notable sociologist from Britain, recognized for his structuration theory and comprehensive perspective on contemporary societies.

Ulrich Beck

A German sociologist known for his work on the risk society, individualization, and reflexive modernization.

Zygmunt Bauman

A Polish sociologist known for his analyses of the links between modernity, globalization, and consumerism, as well as his concept of "liquid modernity".