A two-year European call option on a dividend-paying stock is currently selling for $10. The stock price is $84, the strike price is $80, and a present value of all future expected dividends is $2. If the risk-free interest rate is 8% per annum for all maturities, continuously compounded, what strategy should be taken to exploit arbitrage opportunity, if there is any?
buy the call option and short the stock
sell the call option and short the stock
buy the call option and buy the stock
sell the call option and buy the stock