A three month European at the money call option on a stock is trading at the same price as the price of its corresponding put option. (put option with the same strike and the same expiration as the call)

a. Does an arbitrage opportunity exist regarding securities markets for T-Bills, the stock and these options? Explain.

b. completely specify a set of trade you would make now to exploit the arbitrage opportunity.

c. compute the profit of your arbitrage trades specified in (b) at the time of option expiration if current stock price is $150 and both the call and put are trading at $8

d. Which option call or put should be priced higher?