A European call option and put option on a stock both have a strike price (K or X) of $22 and an expiration date of 2 years. The call sells for $4 and put is priced at $6. The risk-free interest rate is 10% per annum, and the current stock price is $ 21. The stock does not pay any dividend. A risk-free bond has the same face value as the options strike price and will also expire in six months

.a. Using the put-call parity relation, find the price of a synthetic put. The compare the synthetic put price with actual put price and identify whether any arbitrage (riskless profit) opportunities exist. Also, find the amount of arbitrage profit per share and list thespecific transactions to realize arbitrage profits.

c. Using the put-call parity relation, find the price of a synthetic stock. The compare the synthetic stock price with actual stock price and identify whether any arbitrage (riskless profit) opportunities exist. Also, find the amount of arbitrage profit per share and list thespecific transactions to realize arbitrage profits.