A European call that expires in six months and has a strike price of $30 is priced at $2.The underlying stock price is $29.The term structure is flat, with all risk-free rates being 10%.

a)What is the price of a European put option that also expires in six months and has a strike price of $30?

b)Is there any arbitrage opportunity if the price of the put option is $1.25?If so, describe how an arbitrageur would trade.