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A 6-month European put option on a dividend-paying stock is currently selling for $2. The stock price is $95, the strike price is $100, and

A 6-month European put option on a dividend-paying stock is currently selling for $2. The stock price is $95, the strike price is $100, and the interest rate is 5% per annum. A dividend of $0.3 is anticipated to pay in 8 months.

Verify your trading positions taken at each point in time for the arbitrage opportunity

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