A 3-month European Put option on a non-dividend paying stock is currently selling at $3.00.

The stock price is $35. The exercise price is $40, and the risk-free rate is 4% per annum.

What should be the minimum price of this Put Option?

Lower Bound European put: p > PV (X) S

[Continuing from the above question]

A 3-month European Put option on a non-dividend paying stock is currently selling at $3.00.

The stock price is $35. The exercise price is $40, and the risk-free rate is 4% per annum.

Assume the fair price is more than $3,00. So, there is a violation of Lower Bound European put: p > PV (X) S

What would an arbitrageur make right now?