Problem 3.3. A stock that does not pay dividend is trading at $20. A European call option with strike price of $15 and maturing in one year is trading at $6. An American call option with strike price of $15 and maturing in one year is trading at $8. You can borrow or lend money at any time at risk-free rate of 5% per annum with continuous compounding. Devise an arbitrage strategy. Problem 3.4. Consider a stock that does not pay dividend. A one-year European put option with strike $40 is trading at $2.40 and a one-year European put option with strike $50 is trading at $12.30. The risk-free interest rate is 5% per annum with continuous compounding. Construct an arbitrage strategy