Suppose a Trader Quotes a Call Price of $4

Multiple Choice

Suppose a trader quotes a call price of $4.50.Then,you can make an immediate arbitrage profit of:

A) $1.50 by buying the synthetic call and selling the market-quoted call
B) $1.50 by selling the synthetic call and buying the market-quoted call
C) $7.66 by buying the synthetic call and selling the market-quoted call
D) $7.66 by selling the synthetic call and buying the market-quoted call
E) None of these answers are correct.