Suppose a stock is currently trading for $59.00, and in one period will either go up by 21% or fall by 9%. If the one-penod risk-free rate is 3.3%, what is the price of a European put option that expres in one period and has an exercise price of $59.00? Suppose the option actually sold in the market for $8.00. Describe a tracing strategy that yields arbitrage profits. The price of the one-year put option is $Round to the nearest cent.) The trading strategy that yields arbitrage profits would be: (Select the best choice below.) O A. The arbitrage trading opportunity will involve buying the option and seling (short) the replicating portolio. B. The arbitrage trading opportunity will involve selling (short) the cption and buying the replicating portfolio. O c. The arbitrage trading opportunity will involve borrowing at the risk-free rate to buy the option and buy the replicating portfolio. O D. The arbitrage trading opportunity will involve selling (short) the option and selling (short) the replicating portfolio