Question: 6. Two arbitrage problems. a. (10) If r = 0.02, T t = , P100(90) = 5, and 0130(90) = 15, explain how to make

6. Two arbitrage problems. a. (10) If r = 0.02, T t = , P100(90) = 5, and 0130(90) = 15, explain how to make guaranteed money. b. (10) If an Eur0pean Call, with cost 050(90) = 10, will suddenly become an American Call, how can you make money and how much

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