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Suppose that C is the price of a European call option to purchase a security whose...

Suppose that C is the price of a European call option to purchase a security whose present price is S. Show that if C > S then there is an opportunity for arbitrage (i.e. riskless profit). You may assume the interest rate is r = 0 so that present value calculations are unnecessary.

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if call price is greater than market price of the commodity or underlying asset i.e. C > S so there is an arbitrage opportunity to the call option holder, he can sell the call option and later on can purchase the assets from open market and can make a profit till price of stock and call would not be the same C= S

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