A stock priced at $65 has three-month calls and puts with an exercise price of $55 available. The calls have a premium of $3.91, and the puts cost $1.6. The risk-free rate is 1.6%. If the put options are mispriced, what is the profit per option assuming no transaction costs?   Bring out 4 decimal places

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Q: ercise price of

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Q: What is the risk-free rate of return?

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