$16)$ A non$-$dividend$-$paying stock priced at $$55$ has a standard deviation of $25\%.$ Three$-$month calls and puts with an exercise price of $$54$ are available. The calls have a premium of $$3\mathrm{.}50,$ and the puts cost $$2\mathrm{.}20.$ The risk$-$ free rate is $4\%.$ Since the theoretical value of the call is $$3\mathrm{.}73,$ you believe the calls are undervalued. If you want to construct a riskless arbitrage to exploit the mispriced calls, you should $.$

A$)$ buy the call and buy the put and buy the stock and borrow the present value of the exercise price at the risk$-$free rate

B$)$ buy the call and sell the put and buy the stock and borrow the present value of the exercise price at the risk$-$free rate

C$)$ sell the call and sell the put and short the stock and invest the present value of the exercise price at the risk$-$free rate

D$)$ buy the call and sell the put and short the stock and invest the present value of the exercise price at the risk$-$free rate

Please give an explanation as to why choice D is the correct answer.