Suppose an American put is trading for $$16\mathrm{.}50$ and an American call is trading for

$$15,$ where both options have identical terms. The underlying stock price is $$99,$

and the exercise price is $$100.$ The annual risk$-$free interest rate is $5$ percent, and

the time to expiration for both options is one year. Assuming that the stock pays no

dividends, identify the appropriate arbitrage trading strategy. $($First identify how the

put$-$call parity rules for American options has been violated, and then describe the