Thomas Duckworth Owns and Operates Stones Asset Management

Thomas Duckworth owns and operates Stones Asset Management. The firm manages $10 billion in assets and focuses on exploiting arbitrage opportunities. Duckworth uses put - call parity to price put and call options. According to his put - call parity analysis Duckworth realizes that puts with a strike price of $30 and 1 month remaining until expiration on Medusa's Inc. should be priced at $2.30. However he realizes that the $30 puts are trading for $2.75 in the open market. How should Duckworth exploit this arbitrage opportunity?

A) sell the puts in the open market, buy Medusa's stock, short a zero coupon bond with a face value of $30 and maturity of 1 month, and buy a 1 month call with a strike price of $30
B) buy the puts in the open market, short Medusa's stock, short a zero coupon bond with a face value of $30 and maturity of 1 month, and buy a 1 month call with a strike price of $30
C) sell the puts in the open market, lend $30 at the risk free rate, buy a 1 month $30 call on Medusa's, and short the underlying stock.
D) buy a zero coupon bond with a face value of $30 and maturity of 1 month and buy a 1 month call with a strike price of $30