A stock priced at $75 has a standard deviation of 30%. Three-month calls and puts with an exercise price of $70 are available. The calls have a premium of $8.27, and the puts cost $1.00. The risk-free rate is 5%. You believe the puts are undervalued. Describe the position needed for each security (underlying stock, call, and zero-coupon bond) to establish the arbitrage strategy and calculate the profit once executed