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Business, 15.04.2021 15:50 asdf2342

You are looking at option prices on calls and puts and noticed that Biogen Idec (BIIB) is currently selling at $319.55. You look up the price of a call and a put with a strike price of $300 and maturing in 6 months. The price of the call is $40.80 and the put is $19.25. Assume BIIB does not pay a dividend. You also noticed the risk free rate is 2% per annum with continuous compounding for the next six months. If there is a mispricing, generate an arbitrage thatwill allow you to exploit this mispricingotherwise show that no arbitrage can be made. What do you long and what do you short

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You are looking at option prices on calls and puts and noticed that Biogen Idec (BIIB) is currently...
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