When the underlying asset pays income (or, dividends) it can be shown that put-call parity for European options becomes:

p + S = c + K*exp(-rT) + D

where D s the PV of the dividends paid during the life of the option

The price of a European call that expires in six months and has a strike price of $30 is $2. The underlying stock price is $29, and a dividend of $0.50 is expected in two months and again in five months. The term structure is flat, with all risk-free interest rates being 10%. What is the no- arbitrage price of a European put option that expires in six months and has a strike price of $30? PV(D)=0.9713

p = 2 + 30*exp[(-0.10)(6/12)] + (0.5*exp[(-0.10)(2/12)] + 0.5*exp[(-0.10)(5/12)] -29 = $2.51

ok so since the theoretical price is 2.51, assume the current price of the put is 2.3, what opportunities are available to an arbitrageur? I have kind of worked it out myself to buy the P(MKT)=2.3, and short the c+Ke^-rT+D-S_0. But however I am confused with the terminology of what does shorting a dividend mean and also what does shorting the present value of strike mean? does it have a positive cash flow? Please construct a table to show the payoff of this arbitrage. Thanks