3. A put and a call on the same stock have a strike price of 90 and expire in 7 months. The stock costs 120 and pays to dividends. The call costs 40 and put costs 5 and the 7-month (annual effective) risk-free rate is 3%. What do we know about the prices of these options? O [A] The call is too expensive or the put is too cheap O [B] The call is too cheap or the put is too expensive O C| The call is too cheap and the put is too expensive O [D] The call is too expensive and the put is too expensive O [E] The call is too cheap and the put is too cheap