Puts: An Arbitrage 8.7 Opportunity Suppose that So 37 T=0.5 r=5% K=40 D=0 Is there an arbitrage opportunity? Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull Puts: An Arbitrage 8.7 Opportunity? • Suppose that p = 1 S0 = 37 T = 0.5 r =5% K = 40 D = 0 • Is there an arbitrage opportunity?