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Please show all work, thank you You are looking at options on Ravenclaw Corporation with 13...

Please show all work, thank you

You are looking at options on Ravenclaw Corporation with 13 months until expiration and a strike price of $50. The risk free rate is 2.5% (annualized with continuous compounding, for 1 to 13 months). The firm is expected to pay a dividend of $1.20 each quarter (i.e. in 3, 6, 9 and 12 months) over the next 13 months, and the current stock price is $48.11. The price of the call option is $3.14 and the put option is $4.79. Find the arbitrage trade given these prices and show the profit for each contract.

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