The following option prices were observed for calls on a stock for the trading day of July 6 of a particular year. The stock was priced at 165.13. The expiration was October 16. The continuously compounded risk-free rate is 0.0571, Unless otherwise indicated, assume the options are European. theoretical fair value of the October 165 call is 8.704 where as market value is 8.13 Nd1 is 0.58174 Nd2 is 0.53796 velocity is 21%

Based on the results, recommend a riskless strategy.