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    Exam 9: No-Arbitrage Restrictions
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    The 50-Strike Call on a Stock Is Trading at $13
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The 50-Strike Call on a Stock Is Trading at $13

Question 16

Question 16

Multiple Choice

The 50-strike call on a stock is trading at $13 and a 60-strike call on the same stock with the same maturity is trading at $4.The minimum price of the 100-strike call is


A) $0
B) $1
C) $2
D) $3

Correct Answer:

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