Calls: An arbitrage 8.5 Opportunity? Suppose that =3 So=20 T=1 r=10% K=18 D=0 Is there an arbitrage opportunity? Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull Calls: An Arbitrage 8.5 Opportunity? • Suppose that c = 3 S0 = 20 T = 1 r = 10% K = 18 D = 0 • Is there an arbitrage opportunity?