Exercise 4. The price of a non-dividend-paying stock is $19 and the price of a 3-month European call option on the stock

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answerhappygod
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Exercise 4. The price of a non-dividend-paying stock is $19 and the price of a 3-month European call option on the stock

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Exercise 4. The price of a non-dividend-paying stock is
$19 and the price of a 3-month European call option on the stock
with a strike price of $20 is $4. The price of a 3-month European
put option with the same strike price is 3, the risk-free rate of
interest is 10%.
What opportunities are there for an arbitrageur?
Describe your arbitrage strategy using a table of cash flows and
determine the arbitrage profit.
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