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Given the following information concerning European options on a non-dividend paying stock $3.80 Call price...

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Given the following information concerning European options on a non-dividend paying stock $3.80 Call price Put price Strike ptice Time to expiry Stock price 53.00 $30.00 3 months $30.90 5% p.a. (continuously compounded) Risk free rate Show that put-call parity is violated. Use the table below to indicate the action that is required to earn an arbitrage profit. Based on one stock, calculate the arbitrage profit available Action at to (Circle choice) Cashflow Call buy y sell Put buy / Sell buy / Sell Stock kasti borrow / invest Action - 3 months i stock price 510 Put Stock buy / Sell buy / Sell borrow / invest Cash Action at t3 months If Stock price $30 I Stock price > 530 Arbitrage profit

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