based on the put-call parity relationship, you want to make an arbitrage profit by selling a call, buying a put, and taking a levered equity position.

Stock price=$100 Call price (six-month maturity with a strike price of $110) =$5 Put price (six-month maturity with a strike price of $110) = $8 Risk-free interest rate (continuously compounded) = 10%

1. Following the strategy described above, you need to borrow? 2. under the strategy described above, the immediate arbitrage profit would be?

3. if the stock price at the maturity is $120. how much do you earn from all these positions?