A stock is trading at 100. A one month European put on the stock with a strike of 105 costs $3. Suppose the rate of interest is 12% per year for all maturities. Then, given this data, there is an arbitrage opportunity, which involves, among other things

Select one:

a. Cannot be answered without information on dividends.

b. Buying the put and buying the stock.

c. Buying the put and selling the stock.

d. Selling the put and buying the stock.