State what to do to earn arbitrage profit

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1) Identify if there is any arbitrage opportunity and state what to do to earn an arbitrage profit

2) calculate arbitrage profit using the following information:

Stock price = 110 Call Price = 17 Put Price = 5 Risk free interest rate = 5% Maturity for options = 1 year Strike price for Put and Call: X = 105

Reference no: EM132040417

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