a) Roland buys a share of stock, writes a one-year call option with X = $10, and buys a one-year put option with X = $10. His initial investment to establish the entire portfolio is $9.50. What must be the risk-free interest rate? The stock pays no dividends. [3 points] b) An investor purchases a stock for $38 and a put for $0.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit and loss for this position? What will be the break-even prices? [7 points]