Tempting Twitter TradeQuantitative Finance Level 3
TWTR stock is trading at $36.70. It offers no dividends. The European call on the $35 strike with 10 days to expiry is valued at $4.70. A broker calls up with a market on the European put on the $31 strike with 10 days to expiry and has a market of $3.00 bid at $3.10. What trade do you want to make?
Assume that interest rate is 0%.