4. September 55 European calls on Widgetronics Inc. sell for $3.54. The September 55 European puts sell for $6.93. The risk-free rate is 6 percent and the options have 5 years remaining until exercise. Widgetronics pays dividends at a continuously compounded 2% rate. If the market is efficient: a. What is the price of a pre-paid forward contract for one share to be delivered six months (.5 year) from today? b. What is the six-month forward price for one share of Widgetronics? c. What is the current price of Widgetronics stock? d. Suppose that you observe Widgetronics stock selling above the efficient market price you calculated in part (a). Explain what how you could construct a portfolio that will profit from this mis-pricing without incurring any risk. 5. Suppose all information, including the current stock price you calculated, is as in question (4) except that Widgetronics pays discrete quarterly dividends. What is the present value of dividends payable between now and expiration of the options