AdvancedNumeric answer
A broken parity quote · Part 3 of 3
European call and put options have the same strike of 100 and expiry. There are no dividends or trading costs. The present value of the strike is 98.
At that new stock and call price the put is actually quoted at 11. What profit per share can be locked in immediately by a parity trade?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
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