Question: Do the following data satisfy put call parity for European options? If they dont, show how you can create a portfolio to generate arbitrage profits.

Do the following data satisfy put– call parity for European options? If they don’t, show how you can create a portfolio to generate arbitrage profits. Call price = $6, put price = $3, stock price S = $102, strike price K = $100, time to maturity T = 3 months, and risk- free continuously compounded interest rate r = 5 percent per year.

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