Suppose a stock is currently trading for $61.00 and in one period will either go up by 20% or fall by 9%. If the one-pe od nsk-free rate is 3.1%, what is the pnce of a European put option that exp has an exercise price of $61.00? Suppose the option actually sold in the market for $8.00. Describe a trading strategy that yields arbitrage profits. s n one penod and 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 selling (short) the option and selling (short) the replicating portfolio. O B. The arbitrage trading opportunity will involve selling (short) the option 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 buying the option and selling (short) the replicating portfolio