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[Quantitative finance- derivatives] The present price of stock without dividends is 250 GBP. The market value of a european call with strike price 235 GBP

[Quantitative finance- derivatives]

The present price of stock without dividends is 250 GBP. The market value of a european call with strike price 235 GBP and time to maturity 180 days is 21.88 GBP. The annual risk-free rate is 1%.

Assume that the market price for a European put with same strike price and time to maturity is 5.25 GBP. Show that this is inconsistent with put-call parity.

Describe how you can take advantage of this situaiton by finding a combination of purchases and sales which provides an instant profit with no liability 180 days from now.

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