Suppose that the fair price of a put option is $1.00 whereas its observed (i.e., market traded) price is considerably higher at $1.50. Obviously, this presents an arbitrage opportunity. Select the best practical answer from the followings to demonstrate how you could arbitrage from the situation.

a)Short the put at $1.50 and then, buy the same put at $1.00

b)Short the put at $1.50 and at the same time, sell a call (assuming it is priced fairly), buy a stock and borrow from the bank

c)Short the put at $1.50 and at the same time, buy a call (assuming it is priced fairly), short-sell a stock and invest in the bank

d)Short the put at $1.50 and at the same time, short a call (assuming it is priced fairly), short-sell a stock and invest in the bank