Suppose that we have three european puts with strikes 45 50


Suppose that we have three European puts with strikes 45, 50, and 55 and the same maturity 1 year. Their prices are 6.00, 8.90, 11.10. Is such situation possible? Is it possible to do an arbitrage? Show calculation in detail, and explain in your own words.

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Financial Management: Suppose that we have three european puts with strikes 45 50
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