1.The price of a European call that expires in six months and has a strike price of $30 is $2. The underlying stock price is $29, and a dividend of $0.50 is expected in two months and again in five months. The term structure is flat, with all risk-free interest rates being 10%.

A.What is the price of a European put option that expires in six months and has a strike price of $30? (20 points)

B.Explain carefully the arbitrage opportunities if the European put price is $2. (30 points)