Given the following information concerning European options on a non-dividend paying stock: $3.80 $3.00 Call price Put price Strike price Time to expiry Stock price $30.00 3 months $30.90 5% p.a. (continuously compounded) Risk free rate Show that put-call parity is violated. Use the table below to indicate the action that is required to earn an arbitrage profit. Based on one stock, calculate the arbitrage profit available. Action at t=0 Cashflow Call (Circle choice) buy / Sell buy / sell buy / Sell Put Stock Action at t=0 (Circle choice) Cashflow Call buy / sell Put Stock buy / sell buy / sell borrow / invest Cash Action at t=3 months if Stock price $30 Action at t=3 months of Stock price $30 Arbitrage profit