Given: A zero coupon bond maturing in one year (time T ) with a maturity value $1. XYZ stock. It will not pay dividends in the coming year. A European call on XYZ, with strike price $60 per share, expiring in one year. A European put on XYZ, with strike price $60 per share, expiring in one year. With our usual notation, it is given that (a) The time-0 price of the put should be: p(0)=p(0,T,K)= (Complete and show work.) (b) Suppose that we observe, in the market, p(0)=$14.00 Demonstrate how one can obtain arbilirage profits. Signs: Guidance: You can arrange it so that, for the combined position, either the time-0 value is zero or such that the time-T value is zero. Either way is acceptable. You can use lend/berrow instead of bonds, without specifying "Units". Reminder: Time-0 value is cash outflow. You can change to inflow if you wish. (Then change the title.) Use at least two decimal places. Given: A zero coupon bond maturing in one year (time T ) with a maturity value $1. XYZ stock. It will not pay dividends in the coming year. A European call on XYZ, with strike price $60 per share, expiring in one year. A European put on XYZ, with strike price $60 per share, expiring in one year. With our usual notation, it is given that (a) The time-0 price of the put should be: p(0)=p(0,T,K)= (Complete and show work.) (b) Suppose that we observe, in the market, p(0)=$14.00 Demonstrate how one can obtain arbilirage profits. Signs: Guidance: You can arrange it so that, for the combined position, either the time-0 value is zero or such that the time-T value is zero. Either way is acceptable. You can use lend/berrow instead of bonds, without specifying "Units". Reminder: Time-0 value is cash outflow. You can change to inflow if you wish. (Then change the title.) Use at least two decimal places