Question: Based on the put-call parity relationship, you want to make an arbitrage profit by selling a call, buying a put, and taking a levered equity

Based on the put-call parity relationship, you want to make an arbitrage profit by selling a call, buying a put, and taking a levered equity position. Answer the following three questions. Stock price = $100 Call price (six-month maturity with a strike price of $110) = $5 Put price (six-month maturity with a strike price of $110) = $8 Risk-free interest rate (continuously compounded) = 10% No matter what stock price is at the maturity, the profit from the described strategy will generate O $0 O $120 O a negative profit O a positive profit

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