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suppose that the stock price $32, the risk-free interest rate is 10% per year the price...

suppose that the stock price $32, the risk-free interest rate is 10% per year the price of a 4 month european call option is $2.75, and the price of a 4 month european put option is $2.25. both options have the strike price $39. describe an arbitrage strategy and justify it with appropriate calculations.


second part

use th same data above ut suppose now that the call price is $3.75 and the put price is $2. is there still an arbitrage oppurtunity? describe an appropriate strategy and justify it with appropriate calculations please.
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