If a European put option on a non-dividend stock is trading below its lower bound, then the correct arbitrage strategy would be to: buy the put, buy the stock and borrow the present value of the exercise price sell the put, buy the stock and lend the present value of the exercise price. buy the put, sell short the stock and lend the present value of the exercise price sell the put, sell short the stock and lend the present value of the exercise price.