A European put and a European call with 3 months to maturity and strike prices of $30 are trading at $3.50 and $4.50. The annualized risk-free rate is equal to 5%. The underlying price is $32. 1. Determine if there is an arbitrage opportunity and describe what you have to do to exploit it. Please provide the complete strategy pay-offs at time 0 and at maturity of the option. 2.