77 Calls: An Arbitrage Possibility Suppose that c=3 So=52 7=1 广5% =50 D=0 Is there an arbitrage possibility? Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, Shanghai Normal UniversityOptions, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, Shanghai Normal University 7.7 Calls: An Arbitrage Possibility? • Suppose that c = 3 S0= 52 T = 1 r= 5% X= 50 D= 0 • Is there an arbitrage possibility?