3) The price of an at-the-money European-type put option on the pound sterling () with strike price K=1.7500 US$/ and 4 months to expiration is 0.0325 US$/. The forward rate is 1.7000 U$/ for a forward expiring in 4 months. The pound interest rate is 3% per annum, while the U.S. $ interest rate is 5% per annum. Is this put option priced correctly? If not, devise an arbitrage strategy and calculate the arbitrage profits.