a. The current stock price $100. The yield curve is flat, and the interest rate is 5% per year, compounded annually. Consider options with a maturity of 2 years and a strike price $90. You observe the following market prices for the call and the put options priced at C$20 and P$3. Assume that trading in option markets entails a cast of $x per transaction, i.e., each time a call or an option is bought or sold, a cost x is incurred. Similarly, trading stocks incurs a cast of $y per share, i.e., each time a share of stock is bought or sold, a cost y is incurred. Saving or borrowing at the interest rate is not subject to transaction casts. What condition should x and y satisfy to guarantee the absence of arbitrage? b. Suppose that you can trade stocks, risk-free bonds, calls, and puts in the market. You want to generate the following payoff structure (b1) Please demonstrate how you can generate the payoff by trading calls only. (b2) Please demonstrate how you can generate the payoff by trading puts and bonds