5) r = 8% (c.c.), T (option expiry) = 6 months. Assume we have the following table of option prices:

Strike	Put	Call
K1 = 80	4.40	26.60
K1 = 90	7.94	20.16
K1 = 100	12.66	14.96

a) Use Put Call Parity to identify an arbitrage. Construct the arbitrage portfolio and compute your profit.

b) If the interest rate were 1% instead of 8%, would you still have an arbitrage? If so, what would your profit be?