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(5p) A 1-month European put option on a non-dividend-paying-stock is currently selling for $3.00. The stock price is $100, the strike price is $105, and

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(5p) A 1-month European put option on a non-dividend-paying-stock is currently selling for $3.00. The stock price is $100, the strike price is $105, and the risk-free interest rate is 6% per annum. What opportunities are there for an arbitrageur? You need to describe your strategy and your arbitrage profit using a table of cash flows

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