How should he trade to benefit from the opportunity

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Reference no: EM13909126

Call and put options have a strike price of 20 eur and expiration date in 3 months. Both options are sold at 3 eur. The risk free interest rate is 10% per annum, the current stock price is 20eur. Identify the arbitrage opportunity for investor. How should he trade to benefit from the opportunity?

Reference no: EM13909126

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