You have learned that the European call is now priced at 320 in the market. At the

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Question:

You have learned that the European call is now priced at 320 in the market. At the same time, a 6-month European put on the same stock with a strike price of $3,725 is priced at 95. If put-call parity holds, prove that there is an arbitrage opportunity. Explain your arbitrage transactions and determine the arbitrage profit. Assume zero transaction costs and taxes.