17. A stock is priced at $59, three-months calls and puts with an exercise price of $55 are available. The calls have a premium of $4.27 and the puts cost $0.95. The risk free rate is 5%. If you wished to form a trade strategy to exploit the mispriced puts you should A. buy call; and sell put B. write call; and buy put C. buy put and buy stock; write call and borrow the present value of the exercise price D. buy call and buy bonds with 3-month maturity and par value of $55; short stock and write put E. there is no arbitrage opportunity in this scenario 17. A stock is priced at $59, three-months calls and puts with an exercise price of $55 are available. The calls have a premium of $4.27 and the puts cost $0.95. The risk free rate is 5%. If you wished to form a trade strategy to exploit the mispriced puts you should A. buy call; and sell put B. write call; and buy put C. buy put and buy stock; write call and borrow the present value of the exercise price D. buy call and buy bonds with 3-month maturity and par value of $55; short stock and write put E. there is no arbitrage opportunity in this scenario