A shares are trading at $14.90 per share. In four months time, they will pay a 20 cent dividend. Interest rates (compounded continuously) are 2% per annum. A European put option is trading with strike price $15.50, maturing in 6 months time. (1) If the put option has a price of 63 cents, what is the arbitrage opportunity? (2) A European call option with strike price $15.50 and maturity in 6 months trades at 17 cents. What must the price of the put option be to avoid arbitrage opportunities? How would you trade if the puts price was $1?