Appendix C: Put-Call Parity   • 293
Strike Call
Put
(a)
Interest2
(b)
Put + Interest
(a + b) Dividend P + I − D Notes
18 19.55 0.13 0.03 0.16 0.24 (0.08) P + I < D, 
arbitrage
20 17.60 0.15 0.03 0.18 0.24 (0.06) P + I < D, 
arbitrage
23 14.65 0.28 0.03 0.31 0.24 0.07 No arbitrage
25 12.75 0.39 0.04 0.43 0.24 0.19 No arbitrage
28 10.00 0.69 0.04 0.73 0.24 0.49 No arbitrage
30 8.30 1.00 0.04 1.04 0.24 0.80 No arbitrage
32 6.70 1.43 0.05 1.48 0.24 1.24 No arbitrage
35 4.70 2.37 0.05 2.42 0.24 2.18 No arbitrage
37 3.55 3.25 0.05 3.30 0.24 3.06 No arbitrage
40 2.22 4.90 0.06 4.96 0.24 4.72 No arbitrage
42 1.55 6.25 0.06 6.31 0.24 6.07 No arbitrage
45 0.87 8.65 0.06 8.71 0.24 8.47 No arbitrage
50 0.31 13.05 0.07 13.12 0.24 12.88 No arbitrage
There are only two strikes that might be arbitraged for the 
dividends—the two furthest ITM call options. In order to realize the 
arbitrage opportunity, you would wait until the day before the ex-dividend 
date, exercise the stock option, receive the dividend, and, if you didn’t want 
to keep holding the stock, sell it and realize the profit.