Question: (4 points) Put price should be an increasing function of the strike price K. Suppose this is violated. An American put with strike price 315

(4 points) Put price should be an increasing function of the

(4 points) Put price should be an increasing function of the strike price K. Suppose this is violated. An American put with strike price 315 is traded at $5.60, and an American put with strike price 317.50 is traded at $5.40. The puts are on the same stock and have the samne maturity. Construct an arbitrage strategy and show that it's an arbitrage

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