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A 4-month European call option on a dividend-paying stock is currently selling for $5. The stock price is $64, the strike price is $60, and

A 4-month European call option on a dividend-paying stock is currently selling for $5. The stock price is $64, the strike price is $60, and a dividend of $1 is expected in one month. The risk-free interest rate is 12% per annum for all maturities. Describe an arbitrage opportunity and compute its minimum arbitrage profit.

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