A non-dividend-paying stock is traded at $45 a share, the 6-month European call option with strike price $50 and the 6-month European put option with strike price $40 on the stock are traded at $3.73 and $2.42. The risk-free rate is 5% with continuous compounding.

1. What is the price of the 6-month European put option with strike price $50? What is the price of the 6-month European call option with strike price $40?
2. If the stock price were expected to be unchanged in six months, what option-spread strategy would you use? Clearly, state the option being used in your strategy?
3. Suppose you have just bought 100 shares of the stock and plan to sell them in 6 months at a price between $40 and $50 a share, regardless of the actual stock price, what position in the option should you take?
4. in part(c)if the stock price in 6 months is $39 a share, what will be the profit/loss from your trading portfolio?