3. The price of a European put that expires in six months and has a strike price of $90 is $12.11. The underlying asset is $80, and a dividend of $0.5 is expected in two months and in ve months. The term structure is at (is. constant interest rate), with all risk-free interest rates being 1%. 'What is the price of a European call that expires in six months and has a strike price of $90? Explain carefully the arbitrage opportunities if the European call is $1.5. (Hint: Put-call parity for dividend paying stock is PE Ke'rT : CE S | ID, where In is the present value of the dividend.)