1. A put option on a stock with a current price of $30, has an exercise price of $32. The price of the corresponding call option is priced at $2.25. The annual risk-free rate is 4.5%, and there are three months until expiration. According to the Put-Call parity, what should be the price of the put.

can you please explain step by step the above question thanks

two A three-month European call option on Telsa stock is currently selling for $3.5. The current stock price is $58, and the strike price for the option is $53. The state bank announced the risk-free rate is 10% per annum for all maturities.

• Is there any opportunity for an arbitrageur to profit? Explain your answer?

• Show the strategy how an arbitrageur can obtain the arbitrage profit. Compute the profit.