Multiple Choice
If the observed put option premium is less than what is suggested by the put-call parity equation, astute arbitrageurs could make a profit by ____ the put option, ____ the call option, and ____ the underlying currency.
A) selling; buying; buying
B) buying; selling; buying
C) selling; buying; selling
D) buying; buying; buying
Correct Answer:
Verified
Correct Answer:
Verified
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