Question 4 Mark Suppose Paul observes the following call and put prices for options on ABC Company: Strike 60 65 Call Premium 19 17 Put Premium 12 18 Paul wonders if an arbitrage opportunity exists. What transactions should Paul enter into to exploit the arbitrage opportunity (if one exists)? No arbitrage opportunity exists. Sell 1 unit of call option with strike 60, buy 1 unit of call option with strike 65, and lend at risk-free rate Buy a unit of put option with strike 60, buy 1 unit of put option with strike 65, and lend at risk-free rate D) Buy 1 unit of put option with strike 60, sell 1 unit of put option with strike 65, and borrow at risk-free rate Buy 1 unit of put option with strike 60, sell 1 unit of put option with strike 65, and lend at risk-free rate