Question: please answer both questions PROBLEM 1. [2 points] A stock is trading at $16.30. European calls on the stock with exercise price $15 and expiration

please answer both questions

PROBLEM 1. [2 points] A stock is trading at $16.30. European calls on the stock with exercise price $15 and expiration time in three months are trading at $2.14. The interest rate is r = 3.75%, compounded continuously. What is the price of European put with the same exercise price and expiration time? PROBLEM 2. 14 pointsl European call and put options with exercise price $22.5 and expiration time in six months are trading at $4.12 and $7.42. The price of the underlying stock is $19.32 and the interest rate is 4.15%. Find an arbitrage opportunity, describe the arbitrage strategy, calculate the arbitrage profit. Provide the details

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