consider an underlying priced at $42. the Risk-free rate is 3.5%. European call and put options expiring in three month with exercise prices of $40 are priced at $4.12 and $3.50, respectively. Construct a risk-free strategy that will exploit mispricing. Determine the amount of the arbitrage profit and demonstrate that the strategy is risk-free. Assume that any asset can be bought or sold sort.