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A European put option (on a stock) that expires in 6 months has a strike price of $44. The current stock price is $33 and

A European put option (on a stock) that expires in 6 months has a strike price of $44. The current stock price is $33 and the quarterly risk free interest rate is 4%. The put price is $5. Find an arbitrage strategy and its profit if the stock price at expiration is a) $50, b) $30. Use quarterly compounding.

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