[10 Points] The common stock of Company XYZ is currently trading at a price of $42. Both a put and a call option are available for XYZ stock, each having an exercise price of $40 and an expiration date in exactly six months. The current market prices for the put and call are $1.45 and $3.90, respectively. The risk-free holding period return for the next six months is 4 percent, which corresponds to an 8 percent annual rate. a. [5 Points] Determine whether the $2.45 difference in the market prices between the call and put options is consistent with the put-call parity relationship for European-style contracts. b. [5 Points] Is there any arbitrage opportunity? If yes, how do you exploit this opportunity