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The price of a dividend-paying stock is $56. The quarterly dividend of $1 is expected to be paid in 1 month. The price of a

The price of a dividend-paying stock is $56. The quarterly dividend of $1 is expected to be paid in 1 month. The price of a 3-month European call option on the stock with a strike price of $60 is $3, while the 3-month European put option with a strike price of $60 is sold for $8. The risk-free rate is 8% (compounded quarterly).

Describe the arbitrage strategy and calculate the profit.

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