Consider American call and put on stock Y. Both the call and the put are 6-month to expiration with strike price of $205. Current stock price is $200; and the stock does not pay any dividend in 6-month. Interest rate is 10%. The call option premium is $8.57. 

 

(A) What is the range of the put option premium, for which the trader has no arbitrage opportunities? 

 

(B) Suppose market price of the put is out of your range and is over-priced. Please use a numeric example to briefly describe your arbitrage strategy and cash flows today and in 6 months.