Question 14 Consider a European call on a non-dividend paying stock with a strike of $50 and an expiration date in 2 years time. The option premium is $6, the stock is trading at $55 and the risk free rate is 5% pa. Assume at maturity of the option the stock price is $47. Which of the following is true (to 2 decimal places)? Arbitrageurs will buy the call, short the stock, invest the proceeds and make a profit of $4.5 in 2 years time. Arbitrageurs will sell the call, buy the stock, invest the proceeds and make a profit of S7.15 in 2 years time. A. C. Arbitrageurs will buy the call, short the stock, invest the proceeds and make a profit of S7.15 in 2 years time e,