Question 2 You own a stock that has a current price of $80. A six-month call option on this stock with an exercise price of $70 is selling for $13. A six-month put option on this stock with an exercise price of $70 is selling for $4. Calculate the profit or loss to a written covered call for each of the following stock prices at the end of six months: i $30 ii. $50 III. $70 iv. $90 b. Calculate the profit or loss to a protective put for each of the following stock prices at the end of six months: L$30 il. $50 ili $70 iv. $90 If the continuously compounded annual risk-free rate is 5% then explain clearly how you would conduct an arbitrage and calculate your arbitrage profit at the start of the arbitrage, Edit View Insert Format Tools Table Format