(7 p) A 3-month European call option on a non-dividend-paying stock is currently selling for $1.00. The stock price is $50, the strike price is $50, and the risk-free interest rate is 12.37% per annum with semi-annual compounding. a. (2 p) Convert the risk-free rate to an equivalent continuous compounding rate. b. (2 p) Check if the lower bound condition is violated. c. (3 p) Are there any arbitrage opportunities? If yes construct an arbitrage strategy using a table of cash flows over the time and calculate the arbitrage profit.