Question For a nondividend-paying stock, you are given the following: i) The current price of the stock is 50 ii) In one year, the stock will either go up to 55 or down to 46 iii) The continuously compounded risk-free interest rate is 4% iv) The current price of a 1-year 51-strike European call on the stock is 2.60 Which is the following statement is true? Possible Answers A You can make an arbitrage profit of 0.02 if you sell one unit of the call option, buy 0.444 shares of the stock and borrow 19.64 B You can make an arbitrage profit of 0.02 if you buy one unit of the call option, sell 0.444 shares of the stock and lend 19.64 c You can make an arbitrage profit of 0.43 if you sell one unit of the call option, buy 0.49 shares of the stock and borrow 10.29 D You can make an arbitrage profit of 0.43 if you buy one unit of the call option, sell 0.49 shares of the stock and lend 10.29 E There is no arbitrage opportunity