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[Continuing from the above question] A 3-month European Put option on a non-dividend paying stock is currently selling at $3.00. The stock price is $35.

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[Continuing from the above question] A 3-month European Put option on a non-dividend paying stock is currently selling at $3.00. The stock price is $35. The exercise price is $40, and the risk-free rate is 4% per annum. Assume the fair price is more than $3,00. So, there is a violaion of Lower Bound European put: p > PV(X)S What would an arbitrageur make right now

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