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Consider a six-month European put option on a non-dividend-paying stock when the stock price is $37, the strike price is $40, and the risk-free interest

Consider a six-month European put option on a non-dividend-paying stock when the stock price is $37, the strike price is $40, and the risk-free interest rate is 5% per annum. The put price is $1.00. Is there an arbitrage opportunity? If so, find the arbitrage strategy and its resulting cash flows.

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