AMEX stock is currently trading at $150. The price of a European call on AMEX with a strike price of $150 is $5. The call expires in 1-month. The risk-free rate is 2.5%. A European put on AMEX which has a $150 strike and expires in 1-month is currently trading for $6. How can you arbitrage this situation and make a risk-free profit?

Group of answer choices

I can't.

Buy the put for $6, buy the call for $5, short the stock at $150 per share, and use the proceeds to invest at 2.5% risk-free.

Sell the put for $6, sell the call for $5, borrow $150 at 2.5% and use the proceeds to buy the stock.

Arbitrage is available, but the trades above don't work.