Question: When a European put is priced higher than its upper bound, you can arbitrage by devising a trading strategy that consists of ___________ a) Writing

When a European put is priced higher than its upper bound, you can arbitrage by devising a trading strategy that consists of ___________

a) Writing the European call

b) Writing the corresponding European call and investing the proceeds at a riskfree interest rate

c) Writing the European put and investing the proceeds at a riskfree interest rate

d) Holding the European put and borrowing at a riskfree interest rate

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