Question: We would like you to: Explain what it implies for market participants, whether they can benefit somehow from this situation and give a general intuition

We would like you to:

Explain what it implies for market participants, whether they can benefit somehow from this situation and give a general intuition for the arbitrage strategy.

Provide a specific arbitrage strategy and show explicitly how this strategy earns the arbitrage profit for the investor that applies the strategy.

Discuss how the arbitrage possibilities pressure the prices of put and call options and why the arbitrage forces are important for the put-call parity to hold.

Explain how applicable and effective would the proposed arbitrage strategies be in a real world.

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