(a) What are lower and upper bounds for the price of two-year European put option on a non-dividend-paying stock when the stock price is $42, the strike price is $50, and the risk-free interest rate is 5% per annum?

(b) Suppose that the price of the put option in (a) is $2. Is there an arbitrage in the market? If so, find the arbitrage strategy and its resulting cash flows.

Answer both parts with steps please.