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Abercrombie & Fitch.
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Arbitrage and Options You notice that shares of stock in the Patel Corporation are going for $50 per share. Call options with an exercise price of $35 per share are selling for $10. What"s wrong here? Describe how would you could take advantage of this mispricing if the option expires today.
Use the following options quotations to answer questions 18 through 21:
| Â | Â | Â |
Calls |
Puts |
||
|
Option& |
Strike |
Expiration |
 |
Last |
 |
Last |
|
59 |
55 |
Mar |
98 |
3 1/2 |
66 |
1 1/16 |
|
59 |
55 |
Apr |
54 |
6 1/4 |
40 |
1 15/16 |
|
59 |
55 |
Jul |
25 |
8 5/8 |
17 |
3 5/8 |
|
59 |
55 |
Oct |
10 |
10 1/4 |
5 |
3 1/4 |
Â
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