Suppose that the spot price of the British pound is USD 1.6590, the forward price of a 180 day forward contract on the British pound is USD 1.6566 and a 180 day European put option on British pounds with an exercise price of USD 1.6966 is USD0.03 An arbitrage would involve:

a)Short-selling the British pounds in the spot market and selling the 180-day forward.

b)Buying the 180-day forward and buying the 180-day European put.

c) Buying the 180-day forward and writing the 180 day European put.