A European put option written on a non$-$dividend paying stock has a strike price $K=110,$ it matures in $T=11$ months and it is traded for $p=127\mathrm{.}38.$ The stock's spot price is $S_0=90.$ The continuously compounded risk$-$free rate is $6\%$ per annum. Which of the following statements is correct?

The arbitrage strategy is: Buy the put, buy the underlying stock and sell a bond that pays out $110$ in $11$ months. The arbitrage strategy is: Buy the put and sell a bond that pays $110$ in $11$ months.

The arbitrage profit is LESS than $23\mathrm{.}27.$

The European put price violates the upper price bound.

Hint: Consider the upper and lower option price bounds.

Quote all your calculations to TWO decimal places