The current price for put and call option with strike price


The current price for a put and a call option with a strike price of $30 are $9.57 and 5.20 respectively. The current stock price is $24 and the risk free rate is 3%. Is there an arbitrage opportunity. What is the investment strategy.

a) Buy a put, write a call, short the stock, buy debt

b) Buy a put, write a call, buy the stock, issue debt

c) Write a put, buy a call, buy the stock, issue debt

d) Write a put, buy a call, short stock, buy debt

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Financial Management: The current price for put and call option with strike price
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