Question $3$

Calculate the put premium according to put$-$call parity which gives no arbitrage opportunity. Explain what transaction would you do if the put premium is below$/$above the put premium you calculated.

European call option premium: $c=$$$3$

Stock price today: $S_0=$$$31$

Life of option: $T=0\mathrm{.}25$

Risk$-$free rate for maturity $T$ with continuous compounding: $r=10\%$

Strike price: $K=$$$30.$

No dividends paid during life of option.