Question: can you explain why this is the correct answer 30. Suppose a stock trades for $320 and it pays dividends with a present value of

can you explain why this is the correct answer

30. Suppose a stock trades for $320 and it pays dividends with a present value of $3 over the next 6 months. Suppose the risk-free rate is 6% CC. If European style calls and puts with a strike price of $330 (with PV=320.25 ) and a maturity of 6 months trade for $22 and $20, respectively, how would you trade? A) Buy the call, sell the put, short the stock and invest the proceeds B) Buy the put, buy the stock, sell the call, and borrow the price of the stock C) Buy the call and the put and sell the stock and invest the proceeds D) Buy the call naked

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