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A stock's current price is 101. A call and a put on this stock with maturity 3 months and strike price 95 are priced
A stock's current price is 101. A call and a put on this stock with maturity 3 months and strike price 95 are priced at 11 and 8, respectively. The stock pays no dividend and the annual riskfree rate is 5 percent. You decide to take advantage of the arbitrage opportunity and your transaction involves one share of the stock, one call, one put, and some riskfree bonds. Then your time T arbitrage profit will be (keep 2 decimal places).
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