Exercise 2: Set an arbitrage for European Put Option Prices; D=0; put price = 0.7$ Data: European put option, K = $40 D = 0 So = $38 T = 0.25 Rf = 10% pla. Exercise 2: Set an arbitrage for European Put Option Prices; D=0; put price = 0.7$ Data: European put option, K = $40 D = 0 So = $38 T = 0.25 Rf = 10% pla