Assume the Put-Call Parity holds. If a put option is being sold for more than its fair value, investors would to lock in an arbitrage profit. sell the stock short, sell the put short, buy a call (on the same stock, with same exercise price and maturity), and invest in risk-free bonds sell the stock short, buy the put, buy a call (on the same stock, with same exercise price and maturity), and sell short risk-free bonds buy the stock, sell the put short, buy a call (on the same stock, with same exercise price and maturity), and sell short risk-free bonds sell the put short