Suppose the current price of a stock with a continuous dividend yield of 2% per annum is $10 per share. Suppose also the continuously compounded risk-free interest rate is 5% per annum. Determine whether there is an arbitrage opportunity for the following situation. Explain why.

The price of a European call option with a strike price of $10 and maturity of 1 year is $0.42, and the price of a European put option with a strike price of $11 and maturity of one year is $0.10.