I am currently taking a course in Financial Mathematics as part of my Maths degree. Many of the covered topics are quite basic, and revolve around potential arbitrage opportunities. For example, consider the following scenario:
Looking at part c) of this question, we deduce that the investor can make a guaranteed profit of $\$ 71.61$, with no risk.
In real market situations, do arbitrage opportunities like this exist, or does the No-Arbitrage Principle always hold?