A stock is trading at S $=60.$ There are one$-$month American calls and puts on the

stock with a strike of $60.$ The call costs $2\mathrm{.}50$ while the put costs $1\mathrm{.}90.$ No dividends

are expected on the stock during the options$$ lives. If the one$-$month rate of interest

$($annualized$)$ is $3\%,$ show that there is an arbitrage opportunity available and explain

how to take advantage of it$.$