6) Consider one European call and one European put option written on the same nondividend paying stock (S0=$50) with the same strike price (K = $50) and the same expiration date (T = 1 year). If the price of the call option is equal to the price of the put option and the oneyear interest rate is 5%, an arbitrage strategy consists of: a) Buying the put, shorting both the call and the stock, and investing some cash b) Buying the call, shorting both the put and the stock, and investing some cash. c) Buying both the call and the stock, shorting the put, and borrowing some cash. d) There are no arbitrage opportunities available Please explain how one knows to buy/sell/short invest the options and stock. I want to understand the reasoning and how the answer is correct. Thank you