European call and put options with a strike price of $100 will expire in one year. The underlying stock is selling for $105 currently and makes no cash dividend payments during the life of the options. The risk-free rate is 5% (annual compounding). The put is selling for $3, and the call is selling for $15. Please answer the following questions:

Is there an arbitrage opportunity? Please explain.

If yes, please demonstrate how you should execute the arbitrage transaction. Please follow the approach as we did in class.