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One-year, European call options with strike price 20 are selling for 3 and put options with strike price 20 are selling for 4. Call options

One-year, European call options with strike price 20 are selling for 3 and put options with strike

price 20 are selling for 4. Call options with strike price 25 are selling for 2 and put options with strike

price 25 are selling for 6. One-year, zero-coupon bonds are yielding 3%. Find an arbitrage opportunity

and find its present value using at most ten of each option.

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