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8- Suppose that you noticed the following prices: C=$12; S=$60; X=$50, for a one year European call option. The simple risk-free interest rate is 10%

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8- Suppose that you noticed the following prices: C=$12; S=$60; X=$50, for a one year European call option. The simple risk-free interest rate is 10% per year. Is there an arbitrage profit opportunity here? Yes or no? If yes, how would you exploit it? If no, explain why not. PS: In all questions above X denotes the exercise price of the options, C=call premium, P=put premium, and S=stock price

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