1. A stock has a current price of $90 per share. The stock price next period will be an increase of 15% or a decrease of 5%. The one-period risk-free rate is 6%. A one-period European-style call option on the stock has a strike price of $92. a. What is the no-arbitrage value of the one-period European-style call option? (1 point) b. If the market price of the call option is $6.50 : i. What is the present value of the available arbitrage profit? (1 point) ii. What trades (position and amount) are necessary to capture the arbitrage profit? ( 2 points)