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(E) A four-month European call option on a dividend-paying MLC stock is currently selling for AUD 5. The MLC stock price is AUD 74, the

(E) A four-month European call option on a dividend-paying MLC stock is currently selling for AUD 5. The MLC stock price is AUD 74, the strike price is AUD 70 and a dividend of AUD 0.80 is expected in one month. The risk-free interest rate is 12% per annum for all maturities. What opportunities are there for an arbitrageur under the following conditions? (i) if S.-D-Ke" Sc is violated (04 marks)

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