18. You are given the following regarding the stock of Walmart (ticker: WMT): The stock is currently selling for $100 The volatility o of WMT is 30% The stock pays dividends continuously at a rate proportional to its price and the dividend yield d = 5% The continuously compounded annual risk-free interest rate r = 8% While reading the Wall Street Journal online, Matt notices that a one-year European put option on WMT with a strike price of $100 is selling for $10. Matt wonders whether this put option is fairly priced. In order to determine if an arbitrage opportunity exists, Matt uses a one-period binomial pricing model in which the length of each period is one year (h = 1) and u = e(r-dhtova d=elr-oh-ovh If an arbitrage opportunity does exist, Matt will construct a strategy involving the purchase or sale of exactly one of the European put options. What is the exact arbitrage profit? Please round your answer to 2 decimal places. 18. You are given the following regarding the stock of Walmart (ticker: WMT): The stock is currently selling for $100 The volatility o of WMT is 30% The stock pays dividends continuously at a rate proportional to its price and the dividend yield d = 5% The continuously compounded annual risk-free interest rate r = 8% While reading the Wall Street Journal online, Matt notices that a one-year European put option on WMT with a strike price of $100 is selling for $10. Matt wonders whether this put option is fairly priced. In order to determine if an arbitrage opportunity exists, Matt uses a one-period binomial pricing model in which the length of each period is one year (h = 1) and u = e(r-dhtova d=elr-oh-ovh If an arbitrage opportunity does exist, Matt will construct a strategy involving the purchase or sale of exactly one of the European put options. What is the exact arbitrage profit? Please round your answer to 2 decimal places