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Black Scholes formula

ND_1>=ND_2. Explain if there is arbitrage in this equation.
Written part
Assume for a non dividend paying stock So= 80, vol= 30% p.a, r= 3%, time= 9 months.
{40 if St <=70
{100 – St, If 70<St<110 {0 Otherwise In R (program) Value x, early exercise -> E style option not allowed. 250 step C-R-R binomial tree
* Value= 25.85 -> How?

Can x be created by combination of bond (face value 40) short call at strike 70 and long call at strike 110? Explain!

  St<=70 70<St<=110 St>100
Bond 40 40 40
SC70 0 70(k)-St 70- St
LC110 0 0 St – 110
  40 110-St 0

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If you price separately EC70= 14.78 EC110= 1.52
39.11-14.78+1.52= 25.85 -> price of x
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