Suppose a stock is currenty trading for $61.00 and n one per il e he go up by 20% or fall by 9% f the one-period $81.00? Suppose the option actually sold in the market for $8.00. Describe a trading strategy that yields arbitrage profits. sk free rate is 3.4%, at is the price o a European put option that expires in one period and has an exercise price of The price of the one-year put option is S. (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. B. The arbitrage trading opportunity will involve buying the option and selling (short) the replicating portfolio. 0 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 buying the replicating portfolio