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Suppose the current price of Narver Network Systems stock is $ 4 9 . 8 9 per share. In each of the next two years,

Suppose the current price of Narver Network Systems stock is $49.89 per share. In each of the next two years, the
stock price will either increase by 18% or decrease by 9%. The 4.4% one-year risk-free rate of interest will remain
constant. Suppose the put option with a strike price of $60.00 actually sold today for $6.41. You do not know what the
option will trade for next period. Describe a trading strategy that will yield arbitrage profits.
The price of the two-year put is $
(Round to the nearest cent.)
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