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A European call and put option on shares of fintech stock both have a strike price of sh.14 and time to expiration of three months

A European call and put option on shares of fintech stock both have a strike price of sh.14 and time to expiration of three months .the call option trades at sh.3.75 and put option at sh.1.50 . the risk free rate is 15% p.a. and the current stock price is sh.15.

a) Determine the trading strategy available to an investor ( 1 mark)

b) Calculate the profit of STK (4 marks)

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