3. (25 points) A two-month European put option on a non-dividend-paying stock has a strike price of $65. The risk-free interest rate is 5% per annum and the stock price is $58. a) What is the lower bound for this put option? b) If the market price of this put option is $3, is there an arbitrage opportunity? c) If so, define the arbitrage strategy. 3. (25 points) A two-month European put option on a non-dividend-paying stock has a strike price of $65. The risk-free interest rate is 5% per annum and the stock price is $58. a) What is the lower bound for this put option? b) If the market price of this put option is $3, is there an arbitrage opportunity? c) If so, define the arbitrage strategy