So: 52.50 K: 50.00 T: 9 months (.75 years) r: 3.5% c: 5.50 Suppose that the price of the put option is 3. Execute the arbitrage. (Note: except for the price of the put, all values are the same as those in question 9.) above). Portfolio A Portfolio C So Kert: p: Value of Portfolio C and Value of Portfolio A To artitrage, sell (or short) And buy Net proceeds now: Amount in 9 months: will be for In 9 months, if Sr> 50, the will be exercised and the and the arbitrage profit will be will be for In 9 months, if St 50, the will be exercised and the and the arbitrage profit will be will be for In 9 months, if St