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1. Alphabet, Inc., (GOOG) is expected to pay no dividends in the next six months. The continuously compounded risk free interest rate is 1% for

1. Alphabet, Inc., (GOOG) is expected to pay no dividends in the next six months. The continuously compounded risk free interest rate is 1% for the next six months. GOOG's stock price is $2,756.95 per share. Six-month to maturity calls on GOOG with strike 2800 are trading at 237.80 and sixmonth puts on GOOG with strike 2800 are trading at 225.70. a. If these options are European, is there an arbitrage opportunity? Explain the positions you would enter into and show explicitly that there is an arbitrage opportunity. b. If the options are American, is there still an arbitrage opportunity? Explain

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