For a nondividend-paying stock, you are given: i) The current stock price is 40 ii) At the end of the month the stock price will be either 42 or 38 Assume that the continuously compounded risk-free interest rate is 0.08 Given that the price of a 39-strike call option with 1 month to maturity is 1.5; what strategy can you use to take advantage of the arbitrage opportunity (if any)? A. No arbitrage opportunity exists B. Short one call, buy 0.75 shares and borrow 31.28 in cash O C. Buy one call, short sell 0.75 shares and lend 31.28 in cash O D. Short one call, buy 0.75 shares and borrow 28.31 in cash O E. Buy one call, short sell 0.75 shares and lend 28.31 in cash