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What is the net profit that can be generated

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A European call that expires in six months and has a strike price of $27.9 is worth $3.7. The underlying stock price is $29.08, and no dividend payments are expected during the next six months. All risk-free rates are at 2% per annum with continuous compounding. The price of the put option with the same strike and same maturity is $4.3 in the market. What is the net profit that can be generated from this arbitrage opportunity?

[Answer with a least two decimals, no unit, and no thousand separators; use "." as decimal separator.]

Reference no: EM133275010

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