uppose an American put is trading for

$16.50

and an American call is trading for

$15

, whereboth options have identical terms. The underly - ing stock price is

$99

, and the exercise price is

$100

. The annual risk - free interest rate is 5 per - cent, and the time to expiration for both optionsis one year. Assuming that the stock pays no dividends, identify the appropriate arbitrage trading strategy