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Problem 2 (7 points) You are planning to purchase a 12-month American call option contract on stock of the Canadian apparel company Canadian Goose (Ticker:

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Problem 2 (7 points) You are planning to purchase a 12-month American call option contract on stock of the Canadian apparel company Canadian Goose (Ticker: GOOS). Canadian Goose's stock closed yesterday at CAD \$22.64. You plan on buying a call with strike price CAD 20 and observe a price of 2.40 in the market. (a) (1 point) Show that the option price violates the call option bounds. (b) (6 points) Develop a arbitrage strategy using exactly one option contract. What is your arbitrage profit

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