4. Suppose the price of a non-dividend paying stock is $50. There exist European call and put options on the stock with one month to maturity and the strike price $50. The call is worth of $4 and the put is worth of $4.5. The interest rate is zero. a). What is the cost to construct a synthetic call based on put-call parity? b) Show the cash flow from a long position in the synthetic call in the following table. Transactions Cash flow t Cash flow T, Cash flow T, S(T)s 50 S(T)> 50 c) Is there an arbitrage opportunity between the synthetic call and the actual call? If so, what is the arbitrage profit on a per share basis? 4. Suppose the price of a non-dividend paying stock is $50. There exist European call and put options on the stock with one month to maturity and the strike price $50. The call is worth of $4 and the put is worth of $4.5. The interest rate is zero. a). What is the cost to construct a synthetic call based on put-call parity? b) Show the cash flow from a long position in the synthetic call in the following table. Transactions Cash flow t Cash flow T, Cash flow T, S(T)s 50 S(T)> 50 c) Is there an arbitrage opportunity between the synthetic call and the actual call? If so, what is the arbitrage profit on a per share basis