A stock currently sells for $31. A 3-month European call option on this stock with a strike price of $30 has a premium of $3.
A 3-month European put option on the same stock with a strike price of $30 has a premium of $2.25. Assume a 10% annual continuously compounded risk-free interest rate.
Is there any arbitrage opportunities that exist? If so, what is your arbitrage strategy and your profit in three months?