1. Assume that a European call and a European put on a stock have the same strike price of $60 and the same maturity of 6 months. Call is selling for $3 and put is selling for $4. Ignoring the time value of money, the maximum loss you can suffer at maturity if you buy the call option and simultaneously sell the put option today is equal to

a) $47.

b) $0.

c) $3.

d) $59.

e) none of the above.

PLEASE SHOW ALL STEPS AND EXPLAIN, NO EXCEL